What went wrong at Jamie’s Italian?
Jamie’s Italian is a typical example of the fact that having a good cash balance on a company’s books does not insulate it from going under.
According to the company’s January 2017 accounts, even though the company had a pile of cash of £6.5m, its current liabilities was £24m. That’s almost four times its cash balance and payable within 12 months! In addition, the long term debt was £32m.
Clearly having cash did not help Jamie’s Italian one bit, echoing the need to look at a whole range of factors when analysing a company’s financial health.
To find out more about Jamie’s Italian listen to the Company Clinic webinar on the restaurant sector.