Thu 11th Jul 2024 - Exclusive: future of Hub Box secured following pre-pack sale Exclusive – future of Hub Box secured following pre-pack sale: The future of Hub Box, the south west-based burger brand, has been secured following a sale of the ten-strong business, via a pre-pack administration, to a new company led by the brand’s founder Richard Boon, Propel has learned. Propel revealed in May that Hub Box, which was founded by Boon in 2012, was working with advisors at Interpath on its options. The transaction will see all of Hub Box’s ten restaurants across the south west of England continue to trade, with all of the company’s circa 300 staff transferring to the new company as part of the deal. The new owner is South West Restaurants, a company led by Boon and thought to feature existing Hub Box investor Simon Henderson, of Provenance Investment, Partners. It is thought that the deal sees Loungers co-founder Alex Reilley step down as Hub Box’s chairman. Both Reilley and his Loungers co-founder Jake Bishop had previously invested in Hub Box. It is also understood that the deal sees the business exit leases on previously closed sites in Barnstaple and Plymouth. Despite seeing consistent revenue growth over the past three years, the company had recently been impacted by rising food, energy, interest and labour costs. Hub Box said that with pressure on cash flow increasing, its directors sought to explore investment options, including a sale of the business. However, when a solvent solution could not be found, they took steps to seek the appointment of administrators. Consequently, Steve Absolom and Will Wright, of Interpath Advisory, were appointed joint administrators to Hub Box on 11 July 2024. Immediately following their appointment, the joint administrators sold the business and assets of the company to South West Restaurants. Sam Birchall, head of special situations at Interpath Advisory, who led the transaction, said: “Hub Box has grown a loyal customer base in the south west but, like many other casual dining operators, has been hit hard in recent years by high-cost inflation. We’re pleased to have secured this transaction, which safeguards the future of the brand and which, importantly, preserves employment for 300 staff. We wish all at the company the best for the future.” Hub Box’s estate includes sites in Exeter, Cardiff, Portsmouth, Cheltenham, Taunton and Dorchester. In the year to 31 December 2022, the company reported turnover of £14,880,347 (2021: £12,322,354), with an Ebitda of £524,876 (2021: £1,537,747). Pre-tax loss stood at £1,148,000 (2021: loss of £282,000) as the business grappled with a “significant increase in energy and inflationary costs”. Hub Box features in the Propel Turnover & Profits Blue Book, which will feature 947 companies when the next update is sent to Premium Club members tomorrow (Friday, 12 July). Its turnover of £14,880,347 for the year ending 31 December 2022 is the 539th highest in the database. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.