Founder Larah Bross lodged a petition earlier this month for the business to be wound up at Edinburgh Sheriff Court and for an interim liquidator to be appointed.

Last month, the Edinburgh-based chain was hit with a warning of winding-up action by HMRC as it owed £574,132.03 in unpaid taxes.

It could potentially lose its assets, have its bank account frozen, and have to pay legal and other costs.

The chain, based in Edinburgh, was hit with a warning of winding up action by HMRC last month, for £574,132.03. The next day, on 14 July, Bross registered a new business at Companies House, registering herself as the sole shareholder and trading as Hot Mama Bagels Ltd.

The letter from HMRC’s debt management division stated: ‘If the company does not pay in full or contact us about a payment plan by 3 August 2023, we may apply for a winding-up order against the company for this debt.’

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