Restaurant chain Burger & Lobster has posted its annual figures showing a pre-tax loss of £7m for the 12 months to 3 January 2016. Sales rose by 41.2% to £35.53m, which was largely due to new openings.
Founded in 2011, the future of the company is now in doubt thanks to over-ambitious expansion plans, the fixed price point and the rising price of lobster.
Burger & Lobster currently operates 14 restaurants, twelve of which are in London. Loss-making branches have been sold, including the 240-seat Cardiff site, and is still looking to sell the 170-cover Manchester eatery.
Last year, the group pulled out of opening its first outlet in Scotland at the £107m Marischal Square office and hotel development in Aberdeen, citing opportunities in America as a higher priority as it geared up to launch its second site in New York City in September.
The firm negotiated a loan from National Westminster Bank to finance future growth but has been unable to comply with the terms of the debt agreements. It also restructured its head office to reduce overheads. The company is currently negotiating revised financial terms and is seeking further investment.