Benjys Goes Under Again

This is Money:

All 46 branches of beleaguered sandwich chain Benjys were closed today after the business went into administration for the second time since last July.

Private equity firm Hamilton Bradshaw, which bought Benjys seven months ago, appointed KPMG last night after struggling with rent payments in tough trading conditions.

KPMG has warned that 400 jobs will go at the sandwich chain but added it was still looking to sell the business as a going concern.

A notice displayed at its closed Victoria branch in central London said: ‘The company has gone into administration and this store is closed with immediate effect. We apologise for the disruption to customers and thank them for their loyal custom.’

The company turned to KPMG after efforts to find a buyer for the business foundered at the weekend.

Administrator Myles Halley said: ‘The business has encountered difficulties as it has been making trading losses in the highly competitive food retail sector.

‘Over the last few weeks the directors have tried unsuccessfully to find a buyer and while the administrators will continue to seek offers from interested parties, unfortunately there will be around 400 redundancies.’

Hamilton Bradshaw was paying rent to the group’s previous administrator Deloitte on 38 stores under a temporary agreement struck last year when the private equity firm stepped in to rescue the business.

Last week assets at 17 stores were seized by bailiffs acting for accountancy firm Deloitte which was instructed to seize assets from the shops.

As well as 46 franchised stores, Benjys’ manufacturing site in east London and seven distribution centres - two in Birmingham, two in London, Milton Keynes, Sevenoaks and Warrington have been closed.