Staff say they are waiting for pay packets and unpaid tips while the director plans to open up another business at the shuttered site
Hooters bar on Water Street.(Image: Andrew Teebay Liverpool Echo)
Workers at Liverpool’s shuttered Hooters restaurant say they are yet to receive their final pay packet, as well as tips that have been withheld since August. The restaurant was closed Sunday (January 11) after the ECHO reported on practices at the Water Street venue described by a union as being “illegal”, relating to the withheld tips.
All staff have been laid off by the operating firm, New Zealand Leisure Ltd., with workers told to go to the Government for the outstanding wages and statutory redundancy pay. Sole-director of the firm, Barry Morris, registered a new company, Water Street Hospitality Ltd., on January 2.
A bailiff’s notice has been posted in the window of the shuttered venue and the landlord has changed the locks. The venue was just the second branch of the American chain to open in the UK and was the largest Hooters in the world.
Hooters of Liverpool boss Mr Morris previously told the ECHO that he plans to open a new hospitality business at the venue, saying he was a “scouse family man” who wants to “create a more inclusive concept”. Former workers described Mr Morris’ plan for the new venue as being “Hooters without the Hooters brand”, with many aspects of the controversial chain retained.
Mr Morris told the ECHO that the decision to enter liquidation was taken following “sustained financial pressure” and that employee entitlements are “being handled through the proper statutory processes”. He added that there had been “early discussions” about a “possible rebrand and reopening”, but that there was “nothing in place that would constitute a continuation of the former business”.
‘Unlawful’ and ‘morally repugnant’
Former Hooters of Liverpool Director Barry Morris has set up a new firm called Water Street Hospitality Ltd. following the closure and liquidation of his previous firm. (Image: )
Bryan Simpson, hospitality lead for the Unite union, told the ECHO: “To close a company, sack the workforce, dump unpaid wages and redundancy onto the state, and then reopen the same business under the same control is unlawful under the Employment Rights Act 1996, the TUPE Regulations 2006, and the Insolvency Act 1986.
“It is also morally repugnant. This is exactly the kind of phoenix-behaviour these laws are meant to prevent, yet it continues to happen in hospitality with near impunity.”
Waitress owed almost £1,000 in tips
Bailiff’s forfeiture notice in the window at Hooters bar.(Image: Andrew Teebay Liverpool Echo)
One former part-time waitress at the shuttered venue told the ECHO she was owed almost £1,000 in tips and service charges that had not been paid by management since August. By law, all tips, gratuities and service charges must be paid to workers without any deductions after the introduction of the Employment Act 2023, known as the ‘Fair Tips Act’.
The worker told the ECHO: “Around summer, we noticed the restaurant wasn’t as busy. Sometimes we’d be sat there for hours without customers.
“We used to get tips and service charges paid once a month, then we were told to download an app and started getting taxed on them. Then we were problems with the app and the payments were falling further and further behind.
“By December, we were still owed service charges from back in August. Some of the girls were making £1,000 a week on tips. We were struggling for money around Christmas.
“We’re all really stressed. Some of the girls who’ve worked there from the beginning have loved working there. They’re heartbroken.
“One of the girls can’t pay her rent. I can’t see how the new business will work.”
‘Hooters without the Hooters brand
Hooters bar on Water Street.(Image: Andrew Teebay Liverpool Echo)
Another told the ECHO: “It has caused hardship. Some girls are students here, they’ve no-one to fall back on, they’ve got rent to pay, and some have taken out loans. They’re owed thousands.
“It’s complete radio silence from Barry. We’re looking to make a claim. Barry has now offered a job back to some of the girls, the ones that were, and I quote, “not hostile” over the service charges and tips.”
Of Mr Morris’ plans for the new venue, the former waitress said: “He wants to make it a diner, American vibe. Hooters without the Hooters brand.”
‘I am genuinely sorry’
Hooters bar on Water Street.(Image: Andrew Teebay Liverpool Echo)
In a message to staff, seen by the ECHO, Mr Morris said: “With immediate effect, New Zealand Leisure Ltd has ceased trading and is entering liquidation. As a result, all roles have unfortunately been made redundant as of today.
“I have formally been advised that any outstanding wages, holiday pay, notice pay, and statutory redundancy must now be claimed through the Government Redundancy Payments Service (RPS) once the liquidator is appointed.”
Mr Morris added: “I know this news is upsetting and stressful, and I am genuinely sorry for the impact this has on you.”
Bryan Simpson of Unite added: “Despite the rhetoric from this Labour government about making work pay and strengthening workers’ rights, it is clear that the message is being flatly ignored by unscrupulous employers who know the chances of enforcement are slim.
“This case speaks volumes about the treatment of hospitality workers and the weakness of employment and business law in practice. As the union for restaurant workers, Unite Hospitality will do everything it can to support these workers and urges them to collectively challenge this unlawful behaviour and hold those responsible legally accountable.”
Do you have a information, a tip or a story? Contact jon.blackburn@liverpoolecho.co.uk
Mr Morris told the ECHO: “The decision to enter liquidation was taken on professional advice following sustained financial pressure, and employee entitlements are being handled through the proper statutory processes.
“While there have been early discussions about a possible rebrand and reopening at some point in the future, there are currently no concrete plans, no defined structure, and nothing in place that would constitute a continuation of the former business.”
Hooters Liverpool photographed in 2022. (Image: Liverpool Echo)
Business recovery firm Parker Walsh has been instructed to assist Mr Morris in placing New Zealand Leisure Ltd. into liquidation. A spokesperson for Parker Walsh said: “The business [Hooters of Liverpool] experienced operational disruptions due to external and internal incidents, including trading being temporarily suspended following the Liverpool FC parade incident, which occurred immediately outside the premises.
“In addition, the site suffered significant water damage in the kitchen after a pipe burst, further impacting operations. These challenges compounded ongoing financial difficulties. The company has faced significant and well-documented financial pressures in recent months, which have ultimately made the business unsustainable. Consequently, the decision has been made to cease trading and initiate a formal insolvency process.
“There are currently no official plans for Mr Morris, or any connected party, to continue operating from the premises under the Hooters brand and it is therefore closed permanently. All employees of the business have been made redundant as a consequence of the closure.
“Once the company formally enters liquidation, affected staff will be entitled to submit claims for outstanding wages, holiday pay, notice pay and redundancy through the government’s Redundancy Payments Service, subject to eligibility. Parker Walsh will be contacting employees and creditors in due course to provide further information regarding the liquidation process.
“This will include guidance on their rights and the procedures for submitting claims in respect of monies owed. Further updates will be issued as the liquidation progresses.”
Do you have a information, a tip or a story? Contact jon.blackburn@liverpoolecho.co.uk