Abrakebabra puts turnaround on the menu
Companies behind Abrakebabra and Bagel Master have implemented new business plans to return the businesses to profitability.
This follows new financial accounts showing losses continued to mount at the Abrakebabra Investments Ltd (AIL) Group firms, Abrakebabra Ltd and Bagel Master Ltd in 2012.
A third AIL firm, Sushi Master Ltd reduced its accumulated losses in 2012 by €190,995 from €2.76m to €2.57m.
The AIL group – led by David Zebedee and Graeme Beere – has been in business for the past 28 years and today operates 183 outlets across its portfolio of brands.
The new figures show that losses at Bagel Master Ltd increased by €696,559 in 2012 to €8.3m, with losses at Abrakebabra Ltd increasing by €282,714 to €8.8m.
The accumulated losses at all three firms arose mainly from the impairment of fixed assets at the companies in 2011 due to the decline in the market value of their properties.
A note attached to the accounts of the firms states that "whilst the directors have implemented a business plan to return the group to profitability, the current economic climate and uncertainties with the group's ability to complete negotiations with Lone Star Funds may create material uncertainties over future trading results and cash flows".
The firms' Irish Bank Resolution Corporation (IBRC) loans were sold to Lone Star Funds in December.
A note attached to the accounts states that the directors expect that the restructuring of the group's finances will be completed on terms acceptable to Loan Star Funds.
The note adds that the directors "have implemented a new business plan to restructure the business with a view to returning the company to profit- ability".