Chinese Takeaway Chain

Moorfields were appointed as Administrators over Hotcha, a Chinese takeaway chain operating 75 outlets across the Southwest of England.

The business had expanded rapidly but faced financial pressures due to increased competition, rising operational costs, and challenging market conditions in the casual dining and takeaway sector. Despite an initial marketing process to sell the business as a going concern, no acceptable offers were received, leading to an orderly wind-down to protect stakeholder interests and maximise recoveries.

Objectives

• Attempt a sale of the business and assets to preserve operations and employment.

• Following unsuccessful sale efforts, implement an orderly wind-down of the 75 outlets.

• Maximise recoveries from stock, fixtures, fittings, and other assets.

• Maintain compliance with employment, health & safety, and licensing obligations.

• Protect creditor interests and reduce ongoing liabilities.

• Deliver a structured exit that preserved value wherever possible.

Moorfields’ Actions

• Marketed the business and assets for sale to a range of potential buyers within the sector.

• Following limited buyer interest, took immediate control of all 75 outlets to assess operational viability and asset realisation potential.

• Conducted stock and asset inventories and arranged for the disposal of fixtures, fittings, and equipment.

• Oversaw the orderly wind-down of operations to minimise disruption to employees and customers.

• Managed employee redundancies in accordance with statutory requirements, ensuring compliance and fairness.

• Liaised with landlords and suppliers to terminate leases and contracts efficiently, mitigating ongoing exposure.

Results

• The 75 outlets were closed in an orderly and compliant manner.

• Business and asset sale efforts fully explored before progressing to wind-down.

• Asset realisations achieved through the sale of stock, fixtures, and equipment.

• Employment and statutory obligations were managed professionally.

• Creditor recoveries maximised through structured realisations and cost control.

• The Administration delivered a controlled and professional exit while preserving value wherever possible.