POPULAR business Made By Bob has entered administration after building up debts of hundreds of thousands of pounds, it has been revealed.

However, chef James ‘Bob’ Parkinson, who gave his name to the award-winning restaurant, said the restaurant in the Corn Hall Arcade, Cirencester, remains open for business.

Two administrators from Elwell Watchorn and Saxton LLP were appointed to Made By Bob Ltd on April 3 after debts amounted to more than £339,800, according to documents lodged with Companies House.

The restaurant and deli was opened in 2008 by directors James Parkinson and Mark Booth, but although turnover steadily increased from the beginning, the business has always been plagued by cash flow problems.

Despite agreements being put into place with the eatery’s landlords, Corn Hall Cirencester Ltd, and a loan from director Mark Booth, it is believed that unsustainable levels of creditors’ liabilities have made the business unsustainable.

While the reputation of the business flourished administrator Liam Short’s report says that it never fully recovered from being forced to close in 2016 due to issues with leaking drains.

Additional debts accrued when more money was borrowed to refurbish the business whilst the essential work to repair the drains was being completed.

Made by Bob successfully reopened in January of last year, but Mr Short’s report says that: “The impact on the business of the closure for essential repairs, together with the added burden of additional refit expenditure left the company with an increased level of creditor liabilities – which were unsustainable.”

By January of this year concerns were being raised that the company was insolvent.

In February, as Made By Bob built up rent arrears of over a year, HM Revenues & Customs advised that they intended to issue a winding up petition against the company unless all tax arrears were paid.

Directors are understood to have worked with those to whom they owed money and Corn Hall Cirencester Ltd, the company which Made By Bob lease the premises from, supported a proposal by Mr Booth to instruct a third party manager of the premises to help resolve the situation.

Mr Booth is also a company director for Corn Hall Cirencester Ltd owning over 75 per cent of the company.

Additionally the company which was recommended to manage the restaurant, MBB Brasserie LTD was formed in February 2018, with a sole director – Mark Booth.

Made by Bob is understood to be in the process of being sold to MBB Brasserie Ltd.

James Parkinson has started a new company ‘Made By Bob Holdings Ltd’ which will buy the food bottling and food packaging side of the business.

In a statement, James ‘Bob’ Parkinson said it was business as usual: “Since opening our restaurant doors nine years ago Made By Bob has grown beyond all recognition.

“We now have a successful restaurant and an outside catering company that looks after everything from weddings to large music festivals.

“I am working with my investors in the business to make sure that we can continue to provide excellent service across both the restaurant and the outside catering business.

“We are currently restructuring the companies to expand and develop the catering, our branded products range and the restaurant.

“There is no change in the running of the business and we want to make sure that we look after those most important to us - our customers.

“These are exciting times, as our recent industry awards show, so watch this space, as we have some great plans coming up for our restaurant.”

Creditors should contact the administrators with any instances where they believe that the directors have not fully discharged their duties.