A RESTAURANT which had been popular for more than 40 years had liabilities that outstripped its assets by more than £355,379 when it was placed into liquidation.

Isabel’s in Lower Parkstone never reopened after the first coronavirus lockdown and its director blamed its insolvency on the coronavirus crisis.

Documents filed at Companies House the Station Road business had a £206,938 secured loan from Barclays, as well as £50,000 from the same bank via the government-backed Bounce Back Loans scheme.

A statement of affairs prepared for the liquidators by owner Damian Williams estimates its assets fall short of the amount owed to creditors by £355,379. The assets include £258,375 in property.

Covid crisis shuts restaurant for good after more than 40 years

Employees were owed £7,826 in pay and holidays and should receive their money as preferential creditors.

Other liabilities included £218,514 owed to its sole director through a directors’ loan account, 185 customer vouchers totalling £13,622 and a loan from an associated company of £7,500. HMRC was owed a total of £25,389.

Portland Business Recovery, which is handling the liquidation, has said the lockdown thwarted plans to increase capacity and add a new kitchen.

Speaking last month, the recovery firm said: “Plans were always to develop the offering over time and attempts were made by the director to increase footfall and sales by obtaining planning to renovate and add a new kitchen and extend with a secondary dining area to increase capacity, but this was much delayed.”

It said Mr Williams had decided trading would not be viable under the restrictions imposed by government last summer, and that the latest lockdown put paid to the business’s future.

“Consequently, the director has reluctantly concluded that the business is no longer viable and with much sadness has closed the doors for the last time,” Portland said.

Mike Fortune, director of Portland Business Recovery, said after being appointed: “Sadly, the hospitality sector has been badly hit during the pandemic with three lockdowns and significant restrictions placed upon restaurants in the intervening period.

“Despite the government support through the furlough scheme, grants and the various loan schemes available the situation for many hospitality businesses is bleak.

“Isabel’s is unfortunately one of the many casualties. It is truly unfortunate when a well-established business, that has potentially served three generations of the local community, is forced to close its doors through no fault of its own.”

A recent report found the UK lost around 6,000 licensed premises last year, including restaurants, pubs and social clubs.

The report, by consultancy CGA and business advisory firm AlixPartners warned that “thousands more casualties will follow”.