'Stretched' Gordon Ramsay is forced to sell flagship New York restaurant

Published on Thursday 3 December 2009 23:28

CELEBRITY Scots chef Gordon Ramsay has been forced to sell off his flagship overseas restaurant.

It emerged last night that the owners of the London NYC hotel in Manhattan, New York, have agreed to take over the Michelin two-star rated eaterie as part of an overhaul of his business interests.

The 42-year-old, star of TV shows such as The F Word and Ramsay's Kitchen Nightmares, is thought to have invested about 2 million in the restaurant, which will continue to operate under his name. However, the former Rangers footballer's involvement will be limited to offering advice on menus and service, as well as the occasional visit to staff.

Ramsay, who has been dogged by financial problems over the past two years, unveiled the New York restaurant in a blaze of publicity just over three years ago, but was hit by bad reviews and a lack of trade. It was reported to be losing about 3,000 a month.

A source close to the chef said: "Gordon has handed the restaurant back to the hotel. He is still acting as a consultant, but he doesn't own it. He has been open about having to restructure his business. He had become far too stretched."

Ramsay sold restaurants in Los Angeles and Paris earlier this year. In New York, before ceding control, he shut the 45-seat upmarket dining room at lunchtime to cut costs, removed flowers from the tables and introduced a pre-theatre menu to get more customers through the door.

A spokesman for the chef's parent company for his business interests, Gordon Ramsay Holdings, said: "In line with the restructure of the international Gordon Ramsay Restaurants, the day-to-day operation of Gordon Ramsay at the London NYC is now the responsibility of the hotel, who now operate the restaurant under licence from Gordon Ramsay Holdings.

"Gordon enters his fourth year at the London NYC with the same enthusiasm and passion that has established his reputation in this city of many challenges. Gordon and his team will continue to provide guests with menus and service standards that are the hallmark of Gordon Ramsay."

New York restaurant critic Tim Zagat said he had been struck how few people he had seen dining at Ramsay's restaurant in Manhattan. "His fame put up expectations very high and they were not met. Whether or not it has two stars, it hasn't really ever been a success with New Yorkers."

Earlier this year, Ramsay admitted his business had teetered on the brink of administration. It emerged that Ramsay had been fined 1,500 for failing to file his accounts on time with Companies House.

Last week, four of his London restaurants were taken to court for failing to pay tax; however, Ramsay has insisted two of the bills had been paid, while the cheques for the other two were waiting to clear.