JAMIE Oliver's restaurant in York city centre has suddenly shut after his business empire went into administration.

KPMG, who have been appointed as administrators for Jamie's Italian restaurants, said this afternoon that the eatery in Lendal Cellars was one of 22 outlets across the UK which have shut with the loss of about 1,000 jobs.

"Jamie Oliver Holdings has made arrangements to ensure all restaurant staff salaries will be paid up to the date of the administrators’ appointment," said a spokesman.

Will Wright, partner at KPMG and joint administrator, said: “The current trading environment for companies across the casual dining sector is as tough as I’ve ever seen.

"The directors at Jamie Oliver Restaurant Group have worked tirelessly to stabilise the business against a backdrop of rising costs and brittle consumer confidence.

"However, after a sales process which sought to bring new investment into the business proved unsuccessful, the team took the incredibly difficult decision to appoint administrators.

“Unfortunately, with insufficient funds available to be able to trade the business in administration, all but the Gatwick airport restaurants have now closed.

"Our priority in the coming hours and days is to work with those employees who have been made redundant, providing any support and assistance they need.” 

Jamie said: "I am deeply saddened by this outcome and would like to thank all of the staff and our suppliers who have put their hearts and souls into this business for over a decade. I appreciate how difficult this is for everyone affected.

"I would also like to thank all the customers who have enjoyed and supported us over the last decade, it's been a real pleasure serving you.

"We launched Jamie's Italian in 2008 with the intention of positively disrupting mid-market dining in the UK high street, with great value and much higher quality ingredients, best-in-class animal welfare standards and an amazing team who shared my passion for great food and service. And we did exactly that."

The York restaurant was spread over two floors of an old Tudor wine cellar, with an open kitchen where diners can see the chefs in action. There was also an outdoor dining area, labelled the secret garden.