Spon End restaurant 'owed thousands' as 'dark kitchen' Kbox 'on brink of collapse'

'It will affect our ability to pay the bills as rising costs have made our cashflow very tight' said businessman Abz Hussain



A Coventry restaurant is facing a 'big hit' and has 'lost thousands' as operator Kbox is reportedly on the brink of collapse. Abz Hussain, who runs Aqua Food & Mood on the Butts, said the impact of the firm being reportedly on the verge of calling in administrators has left them struggling.

Mr Hussain runs the Lebanese restaurant which hires out its kitchen space for food brands like Kbox, dubbed 'dark kitchens', covering the expenses of the sales and then getting paid a percentage back. He told CoventryLive that they first realised something was wrong when they failed to receive payments.

"News came about last Friday when they (KBox) failed to make timely payments, saying it was a banking issue," he claims. "Since then we have been in contact with their staff who are now redundant and not working for the company.

"The information given to them (the staff) by the company was little. We haven’t had any other communication by Kbox directors or owners to confirm or to say anything - not even an apology."

He claims the impact is already hitting hard - to the tune of almost £5,000. "We are financially in loss of nearly £5,000 which, in this tough climate, is an absolutely big hit on the business," he said. He says it is having a domino-effect as the restaurant is struggling to pay its bills.

"We owe money to suppliers who are also struggling and it has caused a chain effect. It's really put financial pressure and mental pressure on the suppliers, their and our staff and cashflow."

According to a SkyNews report, Kbox Global, which launched in 2019, has placed insolvency experts on standby. It comes after new investment reportedly failed to come through.

It has been claimed that Interpath Advisory had been lined up to act as administrators to Kbox, with a filing possible as early as this week. But Mr Hussain claims that staff locally have already lost their jobs.

"They (the staff) are distraught," he said. He added that he is unsure if they will ever get the money they are owed.

"We just have to work with our suppliers to spread their payments, be patient, see if our insurances can cover any losses," he said. But the impact is hitting hard: "It will affect our ability to pay the bills as rising costs have made our cashflow very tight and creditors are pulling tight for their remittances .

"We are behind on some marketing costs. People are sending constant reminders which is also very stressful. As businessmen, we trade with integrity and value. It will be difficult to buy or pay for any services that we don’t have a credit line with."

Kbox have been approached for comment.

'Dark kitchen' operator Kbox on brink of collapse

An operator which helps restaurants utilise spare food production capacity is on the brink of collapse, underlining mounting financial pressure on the 'dark kitchens' sector.

Sky News has learnt that Kbox Global, which launched in 2019, has placed insolvency experts on standby after a new injection of funding fell through.

City sources said that Interpath Advisory had been lined up to act as administrators to Kbox, with a filing possible as early as this week.

Insolvency could yet be averted if backers willing to invest more money emerge in the coming days, according to one source.

Kbox was hit by the sudden exit last year of Salima Vellani, who is said to have stunned investors by leaving the company with little notice of her plans.

The company, which was set up to help kitchens use live data to respond to local food delivery demand, has raised tens of millions of pounds from investors since its launch.

Among its shareholders are respected venture capital funds such as Balderton Capital, an early backer of Revolut, and Hoxton Ventures, which has backed a string of British unicorns, including Darktrace and Deliveroo.

Kbox has worked with brands including SuperRico, a Mexican street food operator, and MrBeast Burger, which was launched by Jimmy Donaldson, a prominent YouTube personality.

Its likely demise comes amid financial challenges facing numerous dark kitchen operators, many of which have raised enormous amounts of capital to meet growing demand that failed to materialise.

A dark kitchen is a food business that serves customers exclusively by delivery and pick-up based on phone and online ordering. It is a separate entity that operates out of an existing restaurant's kitchen.