A second business run by “bagel queen” Larah Bross has collapsed and been put into liquidation in the space of 12 months – but she has already launched a new enterprise.
Hot Mama Bagels Ltd filed for insolvency on 5 August – less than a year after Bross Bagels Ltd crashed with debts close to £1 million.
Hot Mama Bagels had been trading in the former Bross Bagels shops in Portobello, Stockbridge and Brunstfield after the phoenix company bought the assets of the distressed sandwich chain for just £18,000.
All the units have now closed and the firm’s catering equipment, furniture and other assets have been listed for auction by asset recovery specialist Sweeney Kincaid.
Accountancy firm Anderson Anderson Brown (ABB) have been appointed as official liquidators of Hot Mama Bagels Ltd but the scale of the debt and number of creditors is currently unknown.
Ms Bross, who said she was stepping away from her latest business because of “a significant toll on my mental health” has already formed a new enterprise and is listed at Companies House as a director and majority shareholder of World Wide Hole Limited.
Also listed as directors of the new business are chef and food industry consultant Jeff Kipp, and Declan Penfold, another food and hospitality consultant who is claimed to work with “global businesses, brands and influencers with taste”.
The official liquidators of Bross Bagels Ltd, Interpath Advisory, are still to lodge the findings of their official report in to the company’s collapse, which left behind debts of around £635,000 due to HM Revenue & Customs in unpaid taxes, National Insurance and VAT. Student loan deductions taken from staff wages also remained unpaid.
An estimated £280,000 is believed to be due to unsecured creditors and small suppliers, while crowdfunders who stumped up £150,000 in two rounds of fundraising will received nothing in return.
Following news of the Hot Mam Bagels failure, a finance expert told The Edinburgh Reporter: “Phoenix companies don’t have a great success rate when the purchasers are the original owners unfortunately, as they fail to make the required changes and run up debts again. The Insolvency Service may well be interested in the circumstances, especially if there are fiscal debts involved again.”
Ms Bross, who appeared at various Foodies Festivals cookery demonstrations around the UK during the summer, and was pictured with celebrities including Peter Andre and Gemma Collins, issued an update on 25 July to crowdfunders who donated up to £1,000 each and who have been left high and dry.
She said: “Despite my resilience and determination, I have reached a point where continuing in this manner is no longer feasible. Prioritising my well-being and that of my loved ones has become imperative, and as difficult as it is, I believe stepping back from operations is the best course of action.
“I want to assure you that the Bross brand will live on. While I cannot promise a return on your investment with Bross Bagels at this moment, I remain committed to finding a way to make it up to you in the future. I am dedicated to exploring all possible avenues to ensure that your faith in Bross Bagels is ultimately rewarded.”
A spokesperson for AAB said: “Judith Howson and David McGinness of AAB Business Advisory & Tax LLP were recently appointed Joint Interim Liquidators of Hot Mama Bagels Ltd on 5th August 2024. The initial investigation is ongoing.”
The Edinburgh Reporter made repeated attempts to obtain comment from Ms Bross but were unsuccessful.
Stephen Rafferty is a former crime correspondent at The Scotsman and was a staff reporter for the Daily Record and Edinburgh Evening News. He has freelanced for many of the Scottish and UK national newspaper titles. Got a story? Get in touch - stephen@theedinburghreporter.co.uk
