Rare Restaurants reports £11.5m loss as subsidiary faces liquidation

Rare Restaurants Limited has reported a loss of £11.48m for the 52-week period ending 29 December 2024, widening from a recorded loss of £498,810 the previous year. 

In light of this, directors have not recommended a dividend for the period, maintaining last year’s position. 

According to Rare Restaurant’s filing at Companies House, the result included a provision to impair its investment in MW Restaurants Limited, which entered voluntary liquidation along with its subsidiaries on 6 June 2025. 

During the financial year, Rare Restaurants undertook a restructuring of group debt. The company repaid all existing facilities and entered into a new senior debt facility, repayable in January 2028. 

At the same time, it reduced bank borrowings in subsidiaries and increased the value of loan notes held by its ultimate parent, Lomo Topco Limited. These funds were then lent back through the group, increasing intercompany creditors.

The company also subscribed to 27,823,783 new ordinary shares of £1 each in its subsidiary, Gioma (UK) Limited.

Rare Restaurants said its ability to repay intergroup balances depends on the cash-generating capacity of companies within the wider group, and that its risks are aligned with those outlined in the accounts of Lomo Topco Limited.

Key risks include exposure to changes in interest rates, which are linked to SONIA, and liquidity management through 12- to 24-month cash flow forecasting.

Although Rare Restaurants does not itself trade, it relies on financial support from its parent. Lomo Topco has committed to providing such support until at least 31 December 2026. Directors said they were satisfied that the parent company has sufficient resources to meet these commitments.

Having reviewed group forecasts and debt maturities, the directors said they were confident the company can continue to meet its liabilities as they fall due.