Another week, another scandal for Gordon Ramsay. But this time it’s nothing to do with the fiery chef being accused of infidelity, lying about his football career or feuding with arch rivals former mentor Marco Pierre White or erstwhile protégé Marcus Wareing.
No, this time his company, Gordon Ramsay Holdings (GRH), has had to admit that it has been forced to renegotiate a multimillion-pound loan after breaching agreements with its lender, the Royal Bank of Scotland.
The group, which acts for 11 of Ramsay’s multi-Michelin starred restaurants in the UK as well as his pub in London’s East End, disclosed the breaches in its most recent financial statement. Released last week, the accounts were filed eight months late.
However, GRH did not specify what covenants were breached, neither did it clarify whether it breached the covenants in the financial year reported (2007) or whether the breaches are ongoing.
Naturally, the development has had a lot of interest from the media.
The Times reports on the matter as Ramsay facing his own Kitchen Nightmare.
According to the Financial Times, although GRH’s “accounts are for the 2007 financial year, the fact that they were signed off last month implies the discussions between the group and its lender are ongoing”.
Meanwhile, The Guardian discovered that GRH has lent £4.4m to Ramsay’s US venture, and granted loans to Ramsay and his father-in-law, Chris Hutcheson, of £80,000 and £530,000 respectively.
The Telegraph found that the two directors in GRH, Ramsay and Hutcheson, were paid salaries of more than £2m in 2007.
GRH’s turnover increased £3.5m to £41.6m in 2007. Its operating profit was £3.3m, an increase of £2.3m.
However, as the Hardens point out, as recently as six months ago Hutcheson told the Evening Standard that turnover for 2007 was £46m, £5m more than the accounts reveal.