KBox Global, a dark kitchen company, has entered administration due to ongoing trading difficulties. Administrators from Interpath Advisory have been appointed to oversee the sale of the company’s brands and platforms.
KBox Global worked with a range of businesses, including restaurants, hotels, and kitchens, to operate “dark kitchens.” These dark kitchens allowed the company to license a variety of delivery-only brands, some of which they developed themselves. During the pandemic, the firm experienced significant growth in the food delivery market.
Despite securing £5 million in seed funding from Hoxton Ventures and an additional £12 million in a funding round led by Balderton Capital, KBox Global began to face increasing challenges over the past few years. Founder Salima Vellani left the business in the previous year, and like many others in the food sector, the company was affected by rising cost inflation.
Interpath Advisory’s Nick Holloway and Will Wright were appointed as joint administrators on October 11. Unfortunately, all 18 of the company’s employees were made redundant, as a solvent solution was not available.
Nick Holloway, Joint Administrator and Managing Director at Interpath, noted, “This is a challenging time for many dark kitchen operators, as cost inflation continues to impact margins. We will now be exploring the rapid sale of both the brands and platform and would ask that any interested parties make contact with us at the earliest opportunity.”
In the company’s most recent accounts, covering the period from December 28, 2020, to December 26, 2021, it had a turnover of slightly over £5 million but incurred a pre-tax loss of £10.1 million. The company’s net current assets amounted to £5.9 million, with net liabilities of £17.4 million.