Historic Italian restaurant chain Spaghetti House has shut all of its restaurants after its parent company entered administration.
Bosses attributed the closure to escalating costs and challenging trading conditions amid “global instability”.
All 101 staff members at the company have been made redundant.
Lavval Restaurants, the group behind the London brand, appointed corporate finance specialist BTG as administrators last week.
It is understood that the company had already closed three locations in recent months, in Mayfair, Goodge Street and Fitzrovia.
Administrators have since shut the remaining five central London sites.
Spaghetti House was founded by Simone Lavarini in 1955 and remained owned by the family.
The group’s Knightsbridge branch was in the media spotlight in 1975 when three robbers took the restaurant’s staff hostage following a failed robbery.
Luigi Lavarini, executive chairman and chief executive of Lavval Restaurants, said: “After 70 years of serving our loyal customers, it is with a heavy heart that we announce Lavval Restaurants Limited has entered administration and will cease trading.
“Years of increasing costs from the pandemic, Brexit, Government budgets and global instability have created difficult market conditions for hospitality.
“Balancing these costs with reduced demand and spending from customers as they navigate the rising cost of living has proven too challenging.
“Despite best efforts and seeking professional advice, we have had to make this difficult but necessary decision to wind down our business.”
Asher Miller, partner at BTG, said: “After a number of years of challenging market conditions worsened by soaring operational, employment, energy and tax costs affecting the hospitality industry, the directors of Lavval Restaurants approached BTG for advice on their available options.
“Unfortunately, despite their best efforts, the directors made the difficult decision to enter administration and appoint us to manage the controlled wind down of the business.”
Last week, it was revealed that up to 150 high street stores previously part of the WH Smith business face closure.
TGJones attributed the significant restructuring to the “direct result of government policy and recent geopolitical events”.
The firm stated that the planned closures are a necessary measure after 12 months of “highly challenging trading conditions”.
Hundreds of jobs are understood to be at risk.
These outlets were rebranded as TGJones following Modella Capital’s acquisition of 480 WH Smith stores last year.
