A notice on the Big Mike’s website noted that a “process adviser” had been appointed to the company behind the restaurant. The appointment of a process adviser is part of the Small Company Administrative Rescue Process (SCARP).
In order for a company to avail of the scheme, it must be “fundamentally viable and capable of trading its way out of its current difficulties,” according to the Department of Enterprise.
Under the scheme, the process adviser is tasked with putting together a rescue plan for the business and working with creditors to consolidate debts.
Mr Smith has confirmed the restaurant started the SCARP process and said there is “a really strong business model in place”. He said the team at Big Mike’s is moving forward “with their head high and chests out”.
“We’re three weeks into the seven-week Government SCARP process, and things are progressing well,” Mr Smith said in a statement.
“Our ambitious project resulted in huge fit out costs from Covid days (when materials costs were 4-5 times the norm) and we’ve tried our very best to maintain those repayments out of cash flow, and we need a pressure release from that. As confirmed by the comprehensive SCARP report.
“We’ve a really strong business model in place with options and support in the background. Jobs are secure, vouchers will be honoured, suppliers have been incredible, and our team is moving forward with their heads high and chests out.”
Mr Smith said “it would be irresponsible” for him as an employer “not to do everything in my power” to keep staff on the restaurant’s payroll rather than the Government’s
He said there has been “exceptional” engagement and good faith from all parties involved, including Revenue, lenders, suppliers, and the process facilitators, and this is the reason the business is already halfway through the SCARP process.
“There’s no sugarcoating it – this isn’t easy – but it’s a lot better than the alternative. We’re staying focused, proactive, and optimistic about the future,” he added.
“Very often the whispers are ten times worse than the truth, we’ve been incredibly transparent with everybody and everybody has shown incredible support, we’re very grateful for the goodwill.”
In July of this year, Mr Smith confirmed the closure of his Mount Merrion-based restaurant Michael’s in order to concentrate his business on Big Mike’s, with staff from Michael’s taking up positions at the Blackrock location.
