Further turmoil in Manchester leisure

Blackhouse Restaurants, operator of Manchester’s Grill on the Alley restaurant, has confirmed that it is seeking a Company Voluntary Arrangement with its creditors.

Grill on the Alley, based on Ridgefield and a favourite among the city’s business diners over the last decade, has been proposed for closure, and consultation with staff has now been opened. London restaurant Grill on the Market has been closed with immediate effect.

The Manchester restaurant had been penciled in for closure at some point next year ahead of the redevelopment of the Island site, and Place understands that notice had been served to that effect.

Blackhouse, which is part of the Living Ventures group, said that any customers with reservations will be contacted and offered a transfer to Grill on New York Street. The group added that “it is our intention to refund any customer deposits paid in advance for bookings at the two restaurants affected by these plans”.

A statement from the business said: “We are confident that our creditors will support our proposals and following this process we will be in a position to make a success of a smaller but high-quality portfolio.”

The news follows the collapse last week of Northern Quarter-focussed bar group MAD, with the loss of 120-plus jobs; and Living Ventures placing two Spinningfields restaurants, Artisan and Manchester House, into administration early in October.

There is however, some positive news from another local leisure operator. KRO Hospitality has acquired Asha’s restaurant at 47 Peter Street, which it will operate as a franchise, with the local management team staying on as the wider Asha’s business focuses on its global expansion programme.

KRO bought the freehold of the building earlier this year and revealed plans, designed by Space Plus, to create a 45-room hotel on the building’s upper floors.

KRO also operates the Velvet hotel, Mr White’s Chophouse and The Light aparthotel in Manchester, and two Holiday Inn Express ventures in Wigan.