One thing is certain when it comes to dealing with the news hungry tabloids and that is don’t sugarcoat the truth. Tabloid sites love exposing the naked truth of stories and it never looks good on the person upon whom the story blows back. Just ask Frank Gifford. Well, in the case of celebrity Chef Gordon Ramsay, it was great tabloid fodder to hear that his British holdings were $50.5 million in debt. This is because his reality TV series “Kitchen Nightmares” has built a reputation for turning restaurants around literally in a matter of days.
Now, it’s come forth that while he has succeeded at turning some businesses around, he has failed with others. During the ten years the show has operated, a total of 123 episodes have aired. That’s 123 restaurants which were literally in shambles which his show featured. Reports are that 60 of those businesses eventually failed. That means Ramsay is batting a little better than 50%. Admittedly, that’s still a pretty good number being that he has no control over how those businesses are run. He can only give advice, but cannot compel anyone to follow his counsels regardless of how wise they are.
However, it does underscore that something may be wrong in the Ramsay paradise because his dozen UK restaurants are deeply in debt. They will need to come up with $50.5 million to settle their outstanding debts within a year. Last year, they lost millions. Now, one report suggests that the UK restaurants lost money due to legal fees and settlements, but the core business grew at a respectable 4%. The legal troubles don’t seem to be limited to the UK either. He is being sued in Los Angeles relative to a lease violation for his FAT COW restaurant. The landlord accused Ramsay of failing to keep up with his $25,000 a month lease agreement.
A spokesman for Gordon Ramsey adamantly dismissed any talk of bankruptcy. In a statement put out after the Radaronline scoop, news outlet UPI was informed that Ramsey has made loans to the businesses which part of his strategy to promote the growth potential and health of the businesses. It is part of the master chef’s strategy to promote strong financial performances on an annual basis.
— Gordon Ramsay (@GordonRamsay) August 8, 2014
“This is an inaccurate interpretation of the public filings that were reported widely in the media back in May, and any claim that the company is anywhere near bankruptcy is ludicrous,” a Ramsay spokesperson said in an email to UPI. “It is standard for the head of the company to deliver loans to expand the business and ensure experiences remain first class, and the Gordon Ramsay Group continues to deliver a strong performance, with growth year on year.”
The statement sounded well and fine, but it doesn’t explain how a ten million dollar loss was a strong performance in any year. As for his popular reality TV series, Ramsey announced that he is calling it quits after his ten year run. He stated that he’s enjoyed his time on the show, but 123 episodes is enough for him.
“As filming comes to a close on the latest series of Kitchen Nightmares I’ve decided to stop making the show,” Ramsay wrote on his website. “I’ve had a phenomenal 10 years making 123 episodes, 12 seasons, shot across 2 continents, watched by tens of millions of people and sold to over 150 countries. It’s been a blast but it’s time to call it a day.”
Update Aug. 7 from Gordon Ramsay’s spokesperson:
“This is an inaccurate interpretation of the public filings that were reported widely in the media back in May, and any claim that the company is anywhere near bankruptcy is ludicrous. It is standard for the head of the company to deliver loans to expand the business and ensure experiences remain first class, and the Gordon Ramsay Group continues to deliver a strong performance, with growth year on year.”
Update Aug. 8 – TMZ reports that Chef Ramsay is being sued for $ 10 million by a ‘business partner’ over the ‘Fat Cow’ restuarant – one thing I do know for sure – Gordon Ramsay is making the news and it all relates to financial matters. As we learn more we will report it right here for you at CDL>