Why Garstang restaurant Guy’s closed - difficulties revealed by administrators
The details surrounding the difficulties which led to the administration of the beloved Guy’s Thatched Hamlet have been revealed.
The business, run by the Wilkinson family since 1980, closed suddenly and unexpectedly at the beginning of February.
The canal-side complex in Bilsborrow includes the 200-cover traditional pub Owd Nell’s Tavern, 175-cover Guy’s Eating Establishment which served Italian cuisine, 80-cover Tommy Hatton’s Function Room off of the cricket grounds and The Boddington Pavilion function room next to the bowling green.
The site is well known for its community events including hosting the weekend-long Oyster Festival with live music and family entertainment every September, as well as regularly hosting community sporting fixtures and special events during the school holidays, from fairs to ice rinks.
According to a report by administrators at FRP, the family-owned company found itself facing cash flow difficulties and creditor arrears following the Covid-19 pandemic, reporting losses in excess of £500,000 for the 2020 fiscal year.
The Eat Out to Help Out initiative reduced VAT rate and the outdoor facilities helped overcome the business disruption for the second half of 2020, but the second lockdown in 2021 significantly impacted turnover, dropping from £5.9m to £3.8m.
Margins were eroded in the subsequent years as external economic factors such as high inflation rates, reduced consumer spending and significant increases in energy prices, impacted operations.
A Food Standards Agency inspection of just one star compounded the challenges.
The administrators added that the previous years' cash flow challenges had led to underinvestment in the operations and the ongoing maintenance program had largely been abandoned.
With the business in arrears on payments to suppliers, and payments due to HM Revenue and Customs deferred with a Time to Pay Arrangement put in place, the company sought external advice and an independent review of its cash requirements.
Increasingly reliant on good weather to generate footfall and turnover, the Guys Eating Establishment board determined that without significant investment the operations could not be turned around and took the decision to offer the business for sale.
The business was offered for sale by private treaty by Colliers in spring 2024 and was expected to sell within the same year.
It did generate significant interest from credible buyers who proceeded with due diligence, but only offers subject to planning permission had been received and while two leisure operators were keen to progress, formal offers had not been placed.
By January 2025, Guys Eating Establishment was again experiencing cash flow difficulties and was unable to settle its VAT liability.
FRP was again engaged to assist in the preparation of a rolling 12-week cash flow, to review the HMRC position and assist with an agreement regarding the arrears.
In May 2025, in the absence of any formal offers for the business, the sale was relaunched and widely publicised. It immediately generated significant interest, administrators said, but the primary interest remained with the two prominent leisure operators who had continued undertaking due diligence since the outset of the marketing.
Poor weather experienced during key trading periods continued to erode the turnover of the business and the lack of investment in repairs and maintenance manifested itself in poor online reviews, undermining consumer confidence.
A cash flow forecast at the end of 2025 revealed a deficit that could not be bridged following the seasonal high of December and it was determined that, in the absence of a going concern offer for the business, operations would need to cease in 2026.
Matters worsened when liabilities owed to HMRC were passed to the Enforcement and Insolvency Department who issued a statutory demand and failing settlement said a winding up petition would be presented.
Guys Eating Establishment was in advanced talks with one of the two interested parties however, this was to acquire the site only and consequently, the directors determined that the company would be unable to settle its liabilities in the event of the sale and took the decision to cease trading and appoint administrators.
Lila Thomas and Jessica Leeming of FRP were appointed as joint administrators of Guy’s Eating Establishments on February 2, 2026.
Their report reveals that creditor claims total more than £4m, including about £322,000 to unsecured trade and expense creditors, who are not expected to recover any money. The business' secured creditors are set to recover the money owed to them.
Following their appointment, the joint administrators explored options to secure a future for the site as a hospitality venue.
Bowland Inns and Hotels last week confirmed it had completed the acquisition of Guy’s Thatched Hamlet and Owd Nell’s Tavern in Bilsborrow.
The Ribble Valley-based hospitality business, part of James’ Places Group, already run a variety of successful country inns, hotels, wedding venues as well as Bowland Brewery.
Bosses said they plan to reopen “as quickly as possible” and begin a major rolling refurbishment programme to restore the site to its former glory.
James Warburton, owner of Bowland Inns and Hotels said: “We are absolutely delighted to be able to now confirm the acquisition of The Thatched Hamlet at Bilsborrow. The Thatched Hamlet is so much more than a pub, restaurant and hotel, it is an iconic destination in its own right.
“It has been a fixture of the North West’s hospitality landscape for more than 40 years.
“You only have to read the social media posts, newspaper articles and comments following the recent surprise closure to see just how important and significant this place is to so many people.
“We aim to get the site working again as quickly as possible, it’s important for the buildings, for the staff, and it’s important for local suppliers too.
“The first job is a deep clean and then some back of house works to the cellars and the kitchens, all essential first investments to underpin everything else we plan to do.
“We will be investing in the outdoor areas first to try to make the best of the fabulous location and the equally fabulous summer that we surely have coming down the line, and then we’ll be working our way through the interiors room by room as the ebbs and flows of the weekday trade allows.”