A POPULAR Scottish food chain has been plunged into crisis after revealing debts in excess of £1 million.

It is understood that Bross Bagels, which currently has four locations in Edinburgh, is facing liquidation after accruing debts of more than £1.2m.

The majority of the money is owed to HM Revenue and Customs, which is reportedly seeking around £625,000 from the bagel business. 

A petition was lodged at Edinburgh Sheriff Court earlier this month on behalf of owner Larah Bross for the business to be wound up.

It means the company could lose all of its branches – although the owners stress they will continue to trade for the time being amid a “restructuring” of the business.

It comes after a joint investigation by the Edinburgh Reporter and Edinburgh Guardian found that HM Revenue and Customs had warned the business back in July that if it didn’t pay £574,132 immediately or contact them about a payment plan, it may apply for an order to wind-up the business.

On July 14, Bross registered a new business – Hot Mama Bagels Ltd – with Companies House.

She told the Edinburgh Reporter and The Edinburgh Guardian: “I’ve had no alternative but to place Bross Bagels Ltd into liquidation.

"As stated previously, all the jobs have been safeguarded and we are bagel business as usual.”