The collapse of a high-end Leeds restaurant co-owned by Gary Neville has left taxpayers facing a bill of more than £500,000, according to a newly published liquidator’s report.
The Man Behind the Curtain, a Michelin-starred restaurant partly owned by the former England and Manchester United defender, entered liquidation with total debts close to £1million.
The report shows HMRC is owed £519,000 by the failed business.
This figure comprises two separate liabilities of £119,090 and £400,194.
The findings were published following a year-long investigation into the restaurant’s finances.
Mr Neville, who co-owned the business, has not paid the outstanding tax bill from his personal funds.
The restaurant opened in Leeds in 2014 and quickly gained national attention for its fine dining concept.
Collapse of Leeds high-end restaurant co-owned by Gary Neville leaves taxpayers with £500,000 bill
|
GETTY
It was marketed as a luxury dining experience rather than a traditional restaurant with customers required to pay £135 per head in advance.
Mr Neville has faced accusations of hypocrisy after the collapse, leaving HMRC with an unpaid tax bill of over £500,000, despite his vocal support for taxing the wealthy, and his backing of Labour leader Keir Starmer.
The former Manchester United defender has an estimated net worth of between £70-£100million.
Promotional material described the venue as “an event, like a concert or theatre experience”.
Gary Neville’s video sparked fury on social media after he criticised ‘angry, white, middled-aged men’ | LINKEDIN
The restaurant featured a black marbled interior and a menu of elaborate dishes with items including scallop with plankton focaccia and a dish described as “toast gravy”.
Guests could choose a 14-course tasting menu priced at £165 per person. Wine pairings added an additional £155 to the total cost.
Mr Neville acquired a 50 per cent stake in the business through his company Relentless Leisure.
The day-to-day operations were overseen by chef Michael O’Hare who appeared on the 2016 series of MasterChef.
Mr Neville previously described the partnership as “one of the most instinctive and incredible deals” he had completed.
Documents filed at Companies House outline the scale of the losses left behind following the closure.
The liquidator confirmed the restaurant’s estimated assets total just £9,500.
Relentless Leisure is listed as being owed £366,000, making it one of the largest creditors.
A director’s loan of £500,000 is recorded as “uncertain” in terms of repayment. Fixtures and fittings valued at £152,973 are also marked as uncertain.
Banks are owed a further £14,000.
The company’s accounts for 2023 remain overdue, according to filings.
The report states Mr O’Hare failed to respond to correspondence from the liquidator relating to the repayment of a £609,000 loan connected to the business.
The liquidator noted that no recovery is expected from this amount.
Despite the size of the outstanding tax liability, Mr Neville has not moved to settle the debt personally.
A spokesman for Mr Neville said he was a shareholder with no involvement in running the restaurant.
“Gary was a shareholder in the business but had no involvement in its operations.
“He invested a significant amount, never took any money out of the business and is a major creditor himself.”
The spokesman said the restaurant struggled due to external pressures.
HMRC remains the single largest creditor following the restaurant’s collapse
|
GETTYThey said: “Like many other restaurants, it was badly affected by Covid and the economic downturn and Michael was forced to close despite fighting very hard to save the business.”
The spokesman confirmed Mr Neville considers himself an investor who incurred losses, saying he does not intend to cover the outstanding liabilities of the company.
The Man Behind the Curtain was one of Yorkshire’s most talked-about restaurants during its early years holding a Michelin star for several years before financial pressures mounted.
HMRC remains the single largest creditor following the restaurant’s collapse.