A major Scottish Italian restaurant chain was at the centre of a commercial dispute which led to creditors moving to place it into liquidation.
The liquidation petition for Tony Macaroni was presented to Glasgow Sheriff Court over six weeks ago by unidentified creditors of the chain, which has 12 restaurants and 300 full-time staff.
Details of the petition came in a small public notice published yesterday and immediately raised worries about the future of the business.
The petition asked that the company be wound up by Glasgow Sheriff Court and to appoint a liquidator.
It was presented on June 11 and four days later the sheriff asked that any party with an interest lodge “answers” to the petition.
Those with an interest were asked to respond within eight days of “intimation, service or advertisement”.
But the 11-year-old Glasgow-based restaurant chain which sponsors Livingston FC said yesterday it was all merely down to a "clerical error" and the situation has been resolved.
And lawyers acting for the creditors yesterday confirmed the dispute has now been resolved "and the petition will be shortly withdrawn".
It comes at a time when director Giulia Marini in its latest financial statements passed the company off as a "going concern" on the basis that it was able to find sources of funding over the next year to help with cash flow.
She said the company was not being funded through "continued profitable trading", with the group's cash flow needs met through "a mixture of bank funding, asset finance and other short term borrowings from various sources".
Despite sales increasing by 10 per cent to £14 million in the year to January, 2017, it's pre-tax profits slumped to £70,936.
Hamilton-based TCH Law said they were instructed by clients to make the liquidation petition "in respect of a commercial dispute".
Tracey Campbell-Hynd, principal and managing solicitor said yesterday: "That dispute formed the basis of the liquidation petition presented to Glasgow Sheriff Court, which has been advertised.
"We are pleased to advise that our clients’ dispute with Tony Macaroni has now been resolved, and the petition will be presented will be shortly be withdrawn, with no further action being taken.”
Chris Bryce, area manager for Tony Macaroni said: "This issue arose due to a clerical error and once highlighted was resolved immediately and unfortunately the notice could not be cancelled in time.
"We are looking forward to opening our new branch in Aberdeen next week.
"I have no further comment as the matter has been resolved."
Ms Marini had warned in October that there was an overprovision of eateries in city centre locations "which we believe will ultimately lead to a 'blood letting' and realignment in a much less congested marketplace."
In response the company revealed an expansion stategy concentrated in areas of high football outside of city centres such as out of town retail centres and leisure parks.
She said the pressure on profitability was affected by several "underperforming" restaurants that were disposed of.
The director's report signed off in October said: "Historically the group has been successful in managing short term cash flow requirements and funding growth in the business through available sources of finance.
"Projections show that further funding will be required during the period of 12 months and deals to secure this funding have not yet been concluded.
"The group's directors have identified providers of finance who will provide a mix of short and longer term funding to finance trading operations and continued growth. The group's directors are satisfied that commercially viable agreements can be agreed with these parties.
"On the basis described above the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus she continues to adopt the going concern basis of accounting in preparing annual financial statements."
She also warned that the "main risk to the business" in the short and medium term is still the condition of the UK economy "especially now as we negotiate our exit terms with the EU, along with the saturation of the 'dining out' market in some key areas".
Guiseppe 'Sep' Marini, managing director of Tony Macaroni and the Marini brand of fish and chip shops is also the joint owner of ice cream chain Nardini’s with business partner David Equi.
Nardini’s – which was founded in 1890 in Largs by Pietro and Rosa Nardini – collapsed into receivership in 2003. The business was later rescued by Equi in a deal believed to have been worth £1m.
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