KFC franchisee plunges into red with €45m loss

A major holder of franchises for the Kentucky Fried Chicken (KFC) brand in Ireland and the UK has seen its holdings in the Republic plunge into the red, with losses nearing €45m.

Newly-filed accounts for Herbel Restaurants (Ireland) show exceptional costs drove the €44.7m pre-tax loss in 2015. The exceptional costs relate to the writedown in value of the firm’s property portfolio, from nearly €95m to €47.45m.

The latest accounts cover the eight months to the end of November 2015. In that time, Herbel (Ireland) recorded revenues of €9.6m. This compared to sales of €18.33m for the preceding 12-month period.

A note attached to the accounts said the firm’s loans were sold by Ulster Bank and subsequently refinanced after the balance sheet date.

It said the company, along with other group companies, has the necessary cash cover to meet its ongoing non-secured creditor obligations and liabilities for the foreseeable future.

Herbel is controlled by prominent Northern-based businessman Michael Herbert, whose business interests also include KFC franchises in the North, Scotland, south-west England and the Isle of Man.

While not the only owner of KFC outlets in the Republic, it is estimated to control around 70.

Herbel (Ireland)’s cash reduced from €625,502 to €371,297 in the latest year under review.


More in this Section

Ireland needs a plan for next recession

Ireland leads in fight for manufacturing jobs for now

US rate fears crash party


Breaking Stories

Air France expands Cork to Paris service

Harry Potter publisher Bloomsbury reports revenues rise

Lonely Planet name Tayto Park and Dublin distillery among world's best experiences

Growth outlook for world economy remains strong

Breaking Stories

Tried and tested: Polar’s new Vantage M running watch

7 design hacks to enhance your garden as the nights draw in

Ask a counsellor: ‘I’m scared my messy relationship history will put my new partner off me’

Whole world in their hands: Icons design globes in aid of GOAL

More From The Irish Examiner