Ambitious financial intervention preserves 400 jobs across five prestigious locations
The restaurant group, which includes the 200-cover Manchester venue within the INNSiDE by Meliá hotel on First Street, faced mounting financial challenges prior to the rescue. This location, which opened last year following an £800,000 refurbishment, features architectural highlights including floor-to-ceiling windows and houses both an all-day dining menu and a dedicated Spritz bar.
Financial restructuring preserves brand integrity
The parent company, Upmarket Leisure Ltd, encountered significant financial difficulties, with losses escalating from £559,000 to £1.475 million in the year ending March 2023. This financial decline prompted HMRC to issue a Winding up Petition against the firm in March 2025.
Dean Watson, Partner at Begbies Traynor, who facilitated the pre-pack administration deal alongside Paul Stanley, highlighted the broader context: “The UK’s leisure and hospitality sector continues to face significant headwinds as it drives towards success. The impact of rising labour, operational and food costs, labour shortages and changes in consumer behaviour are proving challenging for many businesses in the sector and some will need restructuring.”
The administration process resulted in both Watson and Stanley being appointed as Administrators of Upmarket. Their involvement proved crucial in navigating the complex financial situation while maintaining operational continuity.
Employee security prioritised in administration process
A key success factor in the rescue deal was the protection of staff interests throughout the restructuring process. Previous reports had indicated delays in wage payments, which the company attributed to payroll and administrative banking issues.
The acquisition has explicitly guaranteed the preservation of all employee benefits and salary arrangements. The new ownership ensured prompt action, with all outstanding payments processed in full immediately following the completion of the deal on 30 April 2025.
This commitment to workforce stability reflects the broader strategic objective of the rescue package – maintaining operational continuity while addressing underlying financial challenges.
Brand preservation supports future growth
The £5 million rescue package offers multiple strategic advantages beyond immediate financial stabilisation. By maintaining consistent branding across all locations, the deal preserves valuable market recognition and customer loyalty.
A spokesperson for Upmarket confirmed that all venues are now operating as normal, including the flagship Manchester restaurant. This operational continuity provides a stable platform for potential future growth, allowing the business to capitalise on its established market position.
The successful restructuring demonstrates effective crisis management within the premium hospitality sector. By securing both the business and its assets through administration, the organisation has maintained its presence in key metropolitan markets across the UK.
Hospitality sector challenges require strategic adaptation
The financial difficulties faced by this premium restaurant group highlight broader trends affecting the UK hospitality industry. Rising operational costs and changing consumer preferences have created a challenging business environment that requires careful management and strategic foresight.
The successful rescue of this restaurant chain demonstrates that financial restructuring, when properly executed, can provide viable pathways for businesses facing seemingly insurmountable challenges. This approach protects jobs, preserves brand equity, and maintains vital economic activity.
For hospitality businesses navigating similar challenges, this case provides valuable insights into effective crisis management and financial restructuring. The ability to maintain operational continuity throughout administration proceedings has proven crucial to preserving both commercial viability and workforce stability.
The restaurant group now has an opportunity to build upon its established market position while implementing necessary operational adjustments to address the underlying factors that contributed to its financial difficulties.