UK-based advisory and accountancy practice PKF Littlejohn has said that Karaoke Box, a karaoke bars operator, will continue commercial operations following the completion of a restructuring process.
The restructure and sale process, led by PKF, was completed last month.
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The transaction involved a management buyout of two London venues, while a third location in London and Karaoke Box’s Birmingham site ceased operations.
According to PKF, the deal allowed the operator to continue operations, which in turn preserved the employment of 12 people.
“With four sites across London and Birmingham, Karaoke Box had grown into a popular destination, but the rapid expansion of the business had proven to be overly ambitious and the company ran into financial difficulties,” the statement said.
Throughout the process, PKF assisted the management team in maintaining communication with HM Revenue and Customs (HMRC) and positioning the business for future trading.
Legal counsel to the administrators was provided by law firm Shoosmiths, with additional advisory support from Gordon Brothers.
PKF Littlejohn London partner and advisory head Paul Williams said: “This is a positive result for the team and customers at Karaoke Box.
“Not only can the business continue to trade and bring people together, but we have also been able to help ensure that the vast majority of staff have kept their jobs.
“With the two bars continuing to operate in the capital, we expect Karaoke Box to be on a much more robust footing for the foreseeable future.”
The transaction follows other recent restructuring work by PKF Littlejohn in the hospitality and leisure market.
In August, the practice advised on the rescue of Welsh Valleys-based holiday operator Beacon Park Boats, a transaction that preserved 30 jobs.
The company also recently appointed former CBRE director Shaun Skidmore, who has more than 25 years of advisory experience across the hotel, leisure, healthcare and operational living sectors.
In March this year, PKF Littlejohn Advisory UK promoted Stratford Hamilton and Oliver Collinge to partner roles.
