Cocktail bar operator Simmons was acquired by its founder Nick Campbell for £6,051,660 in pre-pack administration, an administrators’ report has revealed.

It was revealed last month that Simmons had been working with Kroll Advisory on its options and completed a strategic restructuring process, supported by existing backer Lonsdale Capital Partners – designed to streamline its portfolio, strengthen its financial position and lay the foundation for continued growth. 

As part of the process, the business, which was founded by Campbell in 2012, said it had taken the decision to exit four leases in London, allowing management to “focus resources on our strongest-performing venues”. 

Alongside this, the company is understood to have secured additional investment to support future expansion and operational improvements across the estate. 

The report said the total sales consideration was £6,051,660, with £1,601,660 cash paid on completion and £4,450,000 of OakNorth debt being repaid. 

A statement of administrators’ proposal by Benjamin Wiles and Philip Dakin, of Kroll Advisory, showed at the time of the administrators’ appointment, Simmons operated 21 bars, 20 in Central London and one in Manchester, plus a head office. 

The group employed circa 300 employees across its sites. The report stated: “In 2018, Lonsdale provided investment to help fund the group’s growth plan, which included the opening of additional sites. In 2020, following the impact of covid-19 on the nightlife/bar sector, the group raised additional funding via loan facilities from OakNorth. 

In recent years, the group has experienced a downturn in trading, largely attributable to a combination of macroeconomic factors. This has caused several sites to be loss-making, which ultimately resulted in the closure of certain sites in 2024, and more recently, two within the first six months of 2025. 

The administrators understand from the management team that in the last 12 months, the cashflow and profitability of the group has been significantly impacted by: a continued challenging consumer environment post-covid-19, with consumers shifting away from drinking culture to more health-conscious lifestyles; increased inflationary pressures; and increased overhead costs. 

Despite positive Ebitda of £2.4m from revenue of £24.9m in FY25, the business faced cashflow issues from the beginning of 2025. This resulted in the business having to approach HM Revenue & Customs to request a time to pay in early 2025. 

A time to pay agreement was agreed covering VAT liabilities of circa £540,000, payable over five-monthly instalments (with a larger upfront payment in the first month).” 

The report showed the business was introduced to Kroll’s restructuring team to look at the viability of a company voluntary arrangement, but following analysis, it was deemed the only option was an accelerated mergers and acquisitions process that led to Campbell acquiring the business.

 The report showed Lonsdale is owed £15,229,000 and is not expected to receive a dividend. The amount owed to ordinary preferential creditors and unsecured creditors is unknown at this time but are not expected to receive a dividend. 

Secondary preferential creditors are owed circa £850,000 and are also not expected to receive a dividend.