A UK-based restaurant chain has been rescued after collapsing into administration, with all jobs saved. HMS (883) Limited, a Scotland-based firm that operated two restaurants, Lucali in Giffnock and Andiamo in Milngavie, appointed administrators earlier this month. The business, which was founded in 2011, collapsed after it became "unable to sustain the historical debt burden".

The firm and its assets were then successfully sold to GFJ Group Limited by the RSM Restructuring Advisory, with all staff transferring over to the new company. Joint administrators Gordon Thomson and Gareth Harris said HMS (883) had "accrued significant debts due to losses resulting from ongoing challenges in the hospitality industry".

They added: "Based in Glasgow, the company owned two Italian restaurants, employing 50 members of staff.

"The director streamlined operations, but was unable to sustain the historical debt burden, leading to the appointment of the administrators."

Mr Thompson continued: "The sale of the business and its assets not only represents the best outcome for the company's creditors, but also secures 50 regional jobs in the hospitality industry."

Rising tax and energy costs have impacted hospitality businesses across the UK in recent months, including in Scotland where the Scottish Hospitality Group launched a campaign calling for better support for pubs, bars and restaurants in February.

Surging costs, business rates and subdued customer spending have led a number of restaurant firms to call in administrators since the start of the year, including American-inspired chain TGI Fridays.

While TGI secured a rescue deal, with its assets sold to a subsidisary company of Sugarloaf, the firm behind the global TGI Friday brand, adminstrators still shut 16 restaurants, axing 456 jobs.

Overall administrations surged by more than 40% in January, according to official figures from the Insolvency Service, with the 151 businesses that collapsed between December and January also marking a 14% rise on the previous year.

Hospitality bosses have warned the trend could be exacerbated by upcoming business rate hikes in April, following reforms announced in last year's Budget.