Banks to go after Jamie Oliver's personal empire in restaurants collapse

Banks and one of Britain's biggest food suppliers are poised to pursue Jamie Oliver over debts after the chef's empire of restaurants collapsed.

The Daily Telegraph understands Oliver provided personal guarantees to lending giant HSBC and distributor Brakes after a previous restructuring, allowing them to claim against him personally for any unpaid bills.

I’m devastated that our much-loved UK restaurants have gone into administration. I am deeply saddened by this outcome and would like to thank all of the people who have put their hearts and souls into this business over the years. Jamie Oliver

— Jamie Oliver (@jamieoliver) May 21, 2019

Administrators were called in yesterday as Oliver's portfolio of restaurants failed, costing 1000 jobs and leaving HSBC tens of millions of pounds out of pocket. A further 300 jobs are at risk.

Oliver said he was "deeply saddened", but insisted his restaurants had "positively disrupted" mid-market dining. The administration comes two years after his business went through a painful restructuring to offload unprofitable sites. All but three sites have now closed, while sites at Gatwick will stay open while KPMG explores options.

A close-up of a sign in the window of Jamie's Italian restaurant on the Hayes in Cardiff, United Kingdom. Photo / Getty Images

KPMG partner Will Wright said: "The business is in administration. All but the Gatwick airport restaurants have closed." The 1000 staff made redundant will be paid until Tuesday.

The TV chef provided £4m ($8m) of funding to his restaurant chain earlier this year. The lending is understood to enjoy "super senior" status, meaning it will be repaid before HSBC from any proceeds salvaged by KPMG. HSBC is understood to be owed £37m.

Oliver said: "We launched Jamie's Italian in 2008 with the intention of positively disrupting mid-market dining, with great value and much higher-quality ingredients, best-in-class animal welfare standards and an amazing team who shared my passion for great food and service. And we did exactly that."

A spokesman for Jamie Oliver declined to comment on the personal guarantees. HSBC and Brakes parent company Sysco Corporation did not respond to a request for comment.