Chinese takeaway’s dreams turn sour

A Chinese takeaway based in the South West of England have become the subject of a fraud investigation by HM Revenue and Customs (HMRC).

Lauded as one of Britain’s most dynamic businesses, ‘Hotcha’ had ambition to be the ‘Dominoes Pizza of Chinese takeaways’. This nationwide chain with its catchphrase- from wok to you- had innovative entrepreneurial founders and outside investors funding its expansion. Its future was bright.

This promising future was however brought tumbling down when men from HMRC raided business addresses as part of a tax fraud and money laundering investigation. Owing creditors and former employees a total of £35million the business’ plans and reputation are in ruins.

Hotcha’s bank, Barclays, froze the company’s accounts. Administrators — London-based Moorfields — were appointed. They are now trying to get hold of Hotcha’s records to retrieve whatever it can. It is seeking buyers for the whole business and its assets.

Hotcha was founded by Jian Liang (James Liang) a young chemistry graduate who moved to Britain in his teens. He started the company  in 2011 with business partner Andy Chan. Companies House records show Liang held just over 80% of Hotcha Ltd and Chan the remainder.

His unique approach allowed them to train staff on the job, thus encouraging talented chefs to apply despite not having years of experience. “Wok skills can be taught within weeks!” Liang insisted in an interview last year.

The business originated in Bristol with a single outlet. It expanded and within a few years had 10 shops, mainly in the southwest of England. Three years ago, Liang said Hotcha was launching a “flat-out” assault to become the first national Chinese takeaway brand in the UK. “The aim is to have enough stores in the pipeline to be able to open one every month,” said Liang at the time.

So what happened?

One morning early this month, HMRC raided business and private addresses of Hotcha. A HMRC spokesman said it was “part of an ongoing investigation by HMRC into a suspected £35m tax fraud and money laundering”. Seven men and three women were arrested.