The future of The Fat Duck and other restaurants founded by Heston Blumenthal is in doubt after HM Revenue & Customs filed a winding-up petition against the chef’s parent company.
HMRC has taken action against SL6 Ltd, which owns The Fat Duck in Bray, Berkshire, alongside the Michelin-starred The Hinds Head and several associated companies. It is believed that around 130 employees will be at risk if the petition continues.
The lawsuit follows a further deterioration in the group’s financial situation. Accounts filed with Companies House show SL6 Ltd made a loss of £2.05m for the year to 2024, down from £1.39m the previous year, despite revenue of £8.9m.
Administrative costs totaled £8.4m, including £2.3m in cost of sales, while staff costs rose to £4.07m due to inflationary pressures and higher wage costs.
The company’s balance sheets show total debts of £2.7m, including £1.67m of tax and national insurance debts and £5,417 of corporation tax. It also reported overdrafts of £806,091, more than the £697,605 held in cash, as well as several outstanding bank loans.
A strategic report signed by Ronald Lowenthal, who now controls SL6 Ltd after Blumenthal sold his stake in 2006, acknowledged a year of “difficult economic conditions” and cited inflation across the supply chain, recruitment challenges and rising labor costs.
Lowenthal said the company decided not to pass the full burden of inflation onto customers, despite the impact on profitability. The Fat Duck’s signature 13-course tasting menu, The Journey, is currently priced at £350 per person.
Auditors Lawfords Consulting previously described the company as a “going concern” and noted that management was seeking long-term financing to stabilize operations. However, HMRC’s decision to submit a winding-up application suggests that negotiations may not have received sufficient support.
An HMRC spokesman said it could not comment on individual cases, but added that winding-up applications would only be lodged once other recovery options had been exhausted.
The development comes at a difficult time for the UK hospitality sector, which has faced rising energy bills, food inflation and higher employment costs in recent years. Gourmet businesses are particularly exposed to fluctuations in their discretionary spending.
The timing is also notable given the new political debate about the value of the hospitality industry. Comments from a senior government adviser this week that Britain “doesn’t need restaurants anymore” drew criticism from industry figures already struggling with higher taxes and regulatory pressure.
Blumenthal, famous for inventive dishes such as snail porridge and Sound of the Sea, became one of Britain’s best-known chefs through experimental cooking at The Fat Duck and television appearances. The restaurant has long been considered a cornerstone of modern British dining.
If the winding up application is successful and the company is unable to secure funding or reach an agreement with HMRC, the case could lead to compulsory liquidation and put one of Britain’s most famous culinary brands at risk. However, a spokesperson for SL6 Limited said: “This was an administrative oversight during our transition to a new accounting system which we are working to resolve. Our restaurants are busier than ever and it will have no impact on our operations. From our end it is business as usual.”
