The Gordon Ramsay debt is becoming more serious, to the tune of almost $50 million.
According to the United Press International, Gordon Ramsay and his company that handles his business endeavors, Kavalake Holdings, is in debt after losing more than $10 million dollars in 2013. The same report reveals that Kavalake Holdings has some $7 million in cash holdings but has $50.5 million in the red that’s due in 2015. The public filings are so confusing that even a rep for the chef’s business made a comment:
“This is an inaccurate interpretation of the public filings that were reported widely in the media back in May, and any claim that the company is anywhere near bankruptcy is ludicrous. It is standard for the head of the company to deliver loans to expand the business and ensure experiences remain first class, and the Gordon Ramsay Group continues to deliver a strong performance, with growth year on year.”
For the fiscal year ending August 31, 2013, Kavalake made a gross profit of $36.5 million, with expenses of $45.8 million and an operating loss of $9.2 million. With other expenses added, the loss for 2013 was more than $10.8 million.
In addition, the report states, Kavalake Holdings had just $7.4 million cash at hand and $50.5 million of debt Gordon has to pay in 2015.
A portion of the debt Gordon is constituted is by a whopping $3.8 million in legal and compliance costs, which were related to his settlement with Chris Hutcherson, his father-in-law turned legal adversary. The two have tussled in court since 2012 over claims of unfair dismissal and unpaid wages, but the Gordon Ramsay recently settled.
According to Examiner, “This is not the first time reports surfaced about Ramsay’s financial status.” There have been similar money claims made about the chef’s business. However, the Ramsay debt claims did not stop him from moving forward.
The debt Gordon Ramsay has at the main subsidiary is even more complicated.
Records for the fiscal year ending August 31, 2021 show a gross profit of $11 million. Administrative expenses, however, were $12.2 million, with interest and other charges at a loss of nearly $83,000. In total, the Holdings Limited lost roughly $1.2 million that year. The year before, the operating loss was $1.74 million.
Perhaps more disturbing, is that the chef’s business has a $69.6 million bill falling due to creditors within one year, and just $25.7 million in on-hand assets. That amount includes $2.6 million in bank loans that must be repaid, $1.25 million to trade creditors, $43.5 million owed to group undertakings, roughly $36,000 to other associated undertakings, and more.
They also note that this year, the company was forced to spend nearly $2.8 million on legal and compliance costs.
The three directors, one of which is the chef, all abstained from paying themselves from the company in both 2012 and 2013, but the report for Kavalake shows more than $595,834 paid out to the three directors. Ramsey also has more than $8.4 million in debt sunk into the company.
These documents only relate to the chef’s British business. In addition to 12 restaurants in the U.K., he has more than a dozen scattered elsewhere across the globe.
Despite the growing Gordon Ramsay debt, auditors seemed optimistic in the reports. They found the report satisfactory, and that the “company has no significant concentrations of credit risk.” And the chef’s enterprise seems to be growing because his 12-year-old daughter Tilly just landed her own cooking show.