Bill’s Restaurants ‘on a knife edge’ as it battles against losses

Bill’s Restaurants has clashed with Marston’s in a High Court property dispute as the company battles to shore up its finances, it can be revealed.

The high-profile all-day eaterie has been the subject of a series of High Court actions by landlords and suppliers since 2021, having racked up £25million losses in just two years.

Restaurant analyst Peter Backman said that Bill’s was on a ‘knife edge’, given the brutal conditions in the wake of the pandemic, cost of living crisis and economic downturn.

Crisis call: Bill’s owner Richard Caring (pictured), took control of his restaurant empire after chief exec Baton Berisha left after only a year in the role

A Bill’s spokesman refused to give details about the dispute with the brewery giant, the other High Court actions and whether it was in financial difficulty.

Although the dispute with Marston’s was settled after the Daily Mail approached the companies, Bill’s has taken out two HSBC debentures – a form of loan agreement – since 2021.

Last year, Bill’s owner, the billionaire nightclub and restaurant entrepreneur Richard Caring (pictured), took control of his restaurant empire after chief executive Baton Berisha left after only a year in the role.

Caring’s move came in December last year as company accounts showed Bill’s had seen turnover slump by more than 50 per cent during the 2020 pandemic.

In 2019, Bill’s pulled in £127million, although it lost £8million that year. But in the calendar year 2020, turnover plummeted to just £61million and losses doubled to nearly £17million. 

The chain has had a revolving door of bosses with executive chairman David Campbell leaving in early 2020 and Duncan Garrood leaving in 2018 after just ten months.

Bill’s origins lie in a greengrocer’s shop in Lewes, East Sussex, where founder Bill Collison decided to add a cafe to his business after a flood forced him to start from scratch. 

Caring, 74, acquired a controlling stake in 2008, when it had just two outlets. By 2017, it had 76 restaurants nationwide but, in 2021, it announced it had closed 14. 

The chain’s fortunes stand in contrast to Caring’s success in building up a chain of restaurants, nightclubs and private clubs, as well as a £1bn fortune.

The last set of accounts for Bill’s shows that it is the guarantor for a £42million revolving credit facility taken out by a connected company Bills Stores, which was due for repayment in September 2021.

Backman said: ‘Bill’s is on a knife edge and that will be the reason for these High Court petitions.’

A Marston’s spokesman said the two High Court actions were over a single site and had been resolved but was not willing to elaborate.