Insolvency practitioners are investigating the disappearance of £100,000 from the finances of a bankrupt Oxford enterprise.

Glut Ltd, trading as Glut, entered voluntary administration in January 2024 following roughly five years of commercial operation.

The George Street eatery opened its doors in 2019 and rapidly gained recognition, achieving the top spot on TripAdvisor’s restaurant listings merely six weeks after debuting.

A notice affixed at Glut’s location signalled that the landlords had resumed control, with the tenancy handed back and the premises secured.

Elliot Green of insolvency and company closure specialists Oliver Elliot was appointed to oversee the firm’s winding-up.

His recently published report drew attention to a notable, unexplained £100,000 shortfall in the director’s loan account, with the underlying transactions remaining untraced.

This matter has become the central focus of the administrator’s examination, conducted with legal assistance, as it may expose improprieties in payments made to the director or associated parties.

Mr Green is currently assessing whether dealings with persons or enterprises connected to the company were valid and appropriately recorded.

He explained that the investigation’s central concern lies in questions about how related party transactions were accounted for, noting the director’s loan account fell from £103,813 to £3,813, representing a £100,000 drop throughout the year concluding on December 31, 2021. He added that so far he has failed to locate the transactions producing this reduction, which seems rather considerable.

Related party dealings present particular concerns in insolvency cases because they can serve as vehicles for moving company assets away from creditors or for conferring advantages upon certain individuals rather than others.

Sami Mahfouz, the owner of Glut restaurant, continues to be central to these enquiries.

In Glut’s case, the chain of events resulting in shutdown remains opaque, prompting the continuing investigation.

Mr Green is obtaining legal guidance from a solicitor at Freeths LLP as part of his review.

He further explained that his inquiries have been constrained by missing comprehensive ledgers, paperwork, and records necessary to adequately account for transactions processed through the company’s banking facilities. He noted that multiple insufficiently explained, unsupported, and consequently undocumented transactions have come to light during scrutiny of the company’s financial records concerning related parties. A considerable absence of corroborating documentation, particularly to clarify and validate these dealings, has clearly hampered the investigations.

Since taking on the administrator role in January 2024, Mr Green has accrued professional costs amounting to roughly £15,000.

When Mr Mahfouz initially established Glut, he discussed with this publication the substantial investment necessary to bring the venue to the city centre.

The circumstances behind Glut’s closure remain unresolved.