Gordon Ramsay puts his £3m home on the line to cover debts

CELEBRITY chef Gordon Ramsay’s embattled restaurant empire has been propped up by his £3million luxury London home, it has emerged.

The Scot will be unable to sell the prestigious London address without the permission of the Royal Bank of Scotland, his main creditors.

The arrangement was struck earlier this year following a restructuring of his beleaguered umbrella company, Gordon Ramsay Holdings Ltd (GRH), which is behind his chain of upmarket restaurants.

The firm has faced a torrid time of late, with debts running into millions of pounds and high-profile sales of poor performing eateries in the US.

A spokeswoman for the company admitted to The Scotsman that it had "faced challenges in recent years," but emphasised that it continues to enjoy an "extremely positive" relationship with the bank, and rejected suggestions that Ramsay may lose his home due to financial pressures.

The decision to secure the television chef’s home against the company’s debts was taken in January, after GRH entered negotiations with RBS.

The bank, which is 84 per cent owned by the taxpayer, was granted a unilateral notice against Ramsay’s Wandsworth Common home, which is valued at about £3m.

It means that should the restaurateur decide to sell up, he will require the approval of RBS. However, it is understood that the 43-year-old has no plans to move from the seven-bedroom property where he lives with wife, Tana, 37.

GRH yesterday dismissed reports that the company’s debts amounted to £17m, with the spokeswoman claiming its bank debt stood at just £4.25m.

"Gordon and his team have worked hard to stabilise the situation and good progress has been made," she explained. "The bank debt… has significantly reduced over time and the company has an entirely reasonable level of borrowings given its financial performance."

RBS granted the company an overdraft in 2006 understood to be worth in excess of £10m. The spokeswoman added that the unilateral notice secured by the bank was "standard practice" for any small business when securing funding.

Ramsay, whose television shows include The F Word and Kitchen Nightmares, suffered further embarrassment last weekend after his father-in-law, who helped set up GRH in 1998, warned that he knew "where the bodies are buried".

Chris Hutcheson, 62, made the remarks after being sacked as CEO of the company on the same day Ramsay was pictured purchasing a Ferrari.

While GRH increased its pre-tax profits from £383,325 to £567,032 in the 12 months to the end of August last year, its international subsidiary suffered losses of £8m.

The spokeswoman for GRH said that current trading across the group was "robust," adding: "Gordon is determined to get his business back on track and he’s grateful for the support of a loyal and talented team and partners who share his goals."

GOLD-PLATED:

Gordon Ramsay’s main family home is a seven-bedroom property in London’s Wandsworth Common.

He has recently overseen a two-storey extension to the house, which includes a new kitchen, dining room, playroom and games room.

The restaurant empire overseen by Gordon Ramsay Holdings may have shrunk following the sale of restaurants in the US, but remains a considerable force, with ten sites in London.

His income is boosted by several million pounds a year thanks to book deals, endorsements, and motivational speaking.

Earlier this year, he sold his stake in One Potato, Two Potato, the television firm which produces several of his programmes.

The deal could net him as much as £20 million.

His has a passion for expensive sports cars. He has owned six Ferraris.

Source: Scotsman.com