Balls Brothers in administration

The 19-strong London based wine bar and restaurant operator Balls Brothers has gone into administration.

Zolfo Cooper has been brought in to lead the restructuring process and said all sites would continue trading with no immediate job losses.

It is believed that the company had repeatedly breached its banking covenants and owes Barclay Bank £7m.

In the year to January 2009, the last accounts at Companies House show that the company slumped from a post-tax profit of £2.6m to a loss of £224,000.

Last week, the group, which operates 19 sites across the city, appointed a new interim chief operating officer following the departure of chief executive Chris Sullivan, who was appointed by the banks back in April.

"The Balls Brothers business has been an established name for over 50 years and is extremely well known across the London leisure and dining sector," said Nick Cropper of Zolfo Cooper.

"The company has a great heritage and enjoys a lasting reputation due to its high standards in service, food and wine, and is sure to generate significant interest."