Walton Catering Equipment of Dundee has lost about £10,000 worth of business after fitting out the kitchen of the Beach Hut restaurant in nearby Broughty Ferry.
The restaurant closed in January after only four months in operation. Beach Hut owner Catherine Rae came under fire throughout her short-lived business venture, with several traders claiming they had not been paid.
John Ford, proprietor of Walton Catering Equipment told local newspaper The Courier: “We’re taking legal advice over our next move. We’re hoping to have discussions with the landlord of the property to see if we can come to some sort of arrangement.”
Rae has already been ordered by Dundee Sheriff Court to pay one of her contractors, MEM Electrical, £2,000, after its owner Michael McGregor succeeded in legal action against her.
McGregor successfully sued Rae for £2,394 plus interest after she failed to pay him for electrical work he had carried out.
Despite the court ruling, McGregor predicts he will not see any of the money owed.
“There’s no chance — she doesn’t have any money,” he said. “She told everybody she was buying the place but it was just a lease. It’s just a bad, bad episode.
“The thing is I’ve lost £2,400, the plumber has lost £2,700 and I think the kitchen company were in for thousands.”
Bob Fraser, the plumber left with an unpaid bill of thousands, previously said he has had no contact with Rae. He commented: “We now suspect this was a premeditated act and when we cast the net around we can see that there are an even greater number of people than we first thought out of pocket.”
Catering suppliers and staff, butchers, fishmongers and tradesmen were all left chasing payments after the restaurant closed. A rough estimate of the total owed is now more than £30,000.
Other traders and suppliers are now considering taking the matter to the police.