The UK division of Le Pain Quotidien, the international bakery chain, has collapsed into insolvency, shutting all but one of its cafes and axing 250 jobs.
Administrators from Kroll were appointed by Brunchco UK Ltd, which operated eight Le Pain Quotidien sites in London and one in Oxford. A cafe at St. Pancras railway station, operated by sister company SPQ Holdings Ltd which is not in insolvency, will be the only branch unaffected.
The string of cafes, known for their rustic baguettes and ‘tartine’ open sandwiches, have struggled with fewer customer visits in the capital, high rents and increased wage costs, said Sarah Rayment, global co-head of restructuring at Kroll.
Le Pain Quotidien plans to focus on a franchise model in the UK and elsewhere and it’s holding talks with potential partners for locations in cities, travel hubs and hotels, Chief Executive Officer Annick Van Overstraeten said in a separate statement.
“After Brexit, London has become a very difficult market: fewer people on the streets, higher wage costs, and a very rigid rental market, whereby rent takes up to 30% of our budget,” said Van Overstraeten.
Le Pain Quotidien still operates in 15 countries and plans to add 5 new ones by the end of this year, he said.
