Boss of liquidated York hospitality firm owing over £235,000 slams government
The exterior of The Divine Project in Market Street, which has been replaced by another business. >(Image: Pic supplied)
THE boss behind a liquidated York hospitality business says firms in the sector are suffering due to rising costs and government policy.
Broken Chair Ltd, which traded as The Divine Project at 22–24 Market Street, entered voluntary liquidation on September 10 after two years in operation.
A liquidators’ report known as a Statement of Affairs says the business left debts topping £235,000.
James Snowling Parker, its sole director, says the business was established to celebrate and collaborate three independent York businesses, namely North South, Perky Peacock and Divine Roasters, and to survive “the storm facing hospitality.”
The exterior of The Divine Project in Market Street, which has been replaced by another business. (Image: Pic supplied)
The project began with real ambition, he explains, but it faced significant challenges.
Many directors of both the Divine Project and Divine Coffee Roasters stepped away for personal reasons due to the overwhelming pressure of the hospitality industry, leaving fewer people to carry the increasing operational and financial pressures.
This is confirmed by documents posted on the website of Companies House, which show two Broken Chair directors resigned in 2024 and two more resigned in 2025, leaving only James.
Pastries and bakes at The now closed Divine Project (Image: Maxine Gordon)
James says he and the owners of many connected Yorkshire companies continued supporting Broken Chair Ltd to help make it succeed and meet its liabilities.
Only when this was no longer achievable, it completed an orderly closure.
They did not walk away financially protected.
The Statement of Affairs records £60,165.51 owed to connected businesses, together with £33,000 in director and related loan balances.
This placed a total of £93,165.51 of private funding at risk, he explains, almost as much as the £106,536.35 owed to HMRC and substantially more than the £23,809.72 owed collectively to City of York Council and York BID.
Unsecured Trade and Expense creditors were owed £86,053 but James says most trade creditors were very amicable and worked with him to achieve the best possible outcome.
James also says these figures confirm that connected parties were the biggest losers who continued to pour money into the business to support it and because they believed in it.
However, the final pressures, he says, came from substantial HMRC liabilities and an unresolved business rates dispute with City of York Council and delays with the Valuation Office.
Coupled with the wider pressures facing hospitality, the business eventually became unsustainable.
The exterior of the now-closed Divine Project (Image: Maxine Gordon)
Despite the failure of Broken Chair Ltd, James says he and connected companies made further efforts to protect its people, with connected companies creating 12 jobs for former Broken Chair employees within food service.
James told the Press: “We put substantial private money into the Divine Project because we believed in its people and what it represented.
“We did everything reasonably possible to give it a chance, and when it could not be saved, we focused on protecting jobs and completing an orderly closure.
“What concerns me most is that some of Divine Coffee Roasters’ wholesale customers are now closing for many of the same reasons. Many of which have already recently been in The Press stating the same.
“The pressure created by business rates, government debt, rising costs and limited repayment flexibility has become untenable. Independent hospitality cannot continue absorbing these pressures indefinitely.”
James stresses that Broken Chair Ltd is a separate business to Divine Coffee Roasters he co-founded, which continues to operate its roastery and wholesale activities.
Divine Coffee Roasters is a separate business and continues to trade (Image: Maxine Gordon)
Divine coffee also continues to be served at the independently operated Micklegate shop.
At Market Street, the lease has been taken over by the new Common Ground business, which offers a unique general store experience, early evening bar with tasting events of many challenger brands.
In a statement to The Press, James asked for the liquidation to be treated sensitively as many people were affected.
He also asked “but also if you can convey the clear message that this again is just another project that has failed due to rising governmental financial pressure that is being put on hospitality businesses.”
A City of York Council spokesperson said it just collects business rates for central government and directed us to them for comment.
A spokesperson for HMRC said: "We can’t comment on businesses due to taxpayer confidentiality law."