Pancake Place bosses blame a sexual assault case involving a former Pitlochry supervisor and a Dundee rodent infestation for the firm’s collapse.
It comes after the Scottish high street chain entered liquidation on Monday.
The Courier has seen legal documents which set out the reasons given for the demise of the company, with the loss of 46 jobs.
They say the Pitlochry cafe accounted for half of the Pancake Place’s profits.
But the conviction of its former supervisor on four counts of sexual assault left its reputation in tatters and sent the entire business into a death spiral.
Pancake Place unable to recover from reputational damage
When the Pancake Place ceased trading on Monday, it had four branches in Pitlochry, Dundee, Dunfermline and Elgin.
The Pitlochry cafe, which traded as Cafe Biba, generated 50% of the Pancake Place’s profits.
And according to the legal papers, it relied heavily on local custom and support from tourists.
However, in May this year, Cafe Biba’s main supervisor Glen Buchanan was convicted of four counts of sexual assault involving female colleagues.
The Courier reported how one of Buchanan’s teenage victims tried to take her own life.
Buchanan, 56, was placed on the sex offender’s register while he awaits sentencing.
The assaults happened when the Pancake Place chain was under previous owners.
The legal papers said: “The employment of the manager of the site with responsibility was also consequently terminated.
“The effect of the extremely negative PR of the incident has had a negative effect on trading, and has also made it impossible to replace the manager position.
“The site is not trading at a profit, and no recovery is envisaged.
“The effect of the downward trade at Cafe Biba has made the company unviable.”
Rodents’ return the final straw for Pancake Place
The documents also reveal the Pancake Place’s problems were exacerbated by rodents in Dundee city centre.
The petition to wind up the company explains the Reform Street branch was based between two empty units, which led to a rodent infestation in 2024.
“A significant sum” was reportedly spent on dealing with the infestation.
However, the petition goes on: “The rodent infestation has returned and the sums required to deal with ongoing compliance with pest control are significant.
“The company has no funds to meet the costs.
“The site and stock are likely to be damaged if no action is taken and a value lost to creditors.”
Arrangements being made for staff redundancy claims
Perth businessman Blain Ross bought the Pancake Place from Euan and Angela Dunn in December 2023.
He revealed plans to rebrand Cafe Biba in Pitlochry as a Pancake Place in January this year.
The petition for liquidation reveals the business had assets of around £61,000, versus liabilities of £273,198.
It says all four sites require to be closed, cleaned and their perishable stock sold.
The company’s 46 employees will be paid up to June 24 2025, but there are no further funds for future wages.
The appointment of Opus Business Advisory Group as provisional liquidator will allow staff to make claims with the Insolvency Service for statutory redundancy payments.
Opus partner Paul Dounis said: “We will be reviewing the most effective strategy for realising the company’s assets, including stock with a long shelf life, and will assess whether there is any value in assignment of the leases at the specific sites, in order to maximise the recovery for creditors.”
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