Exclusive:Owner of Department breaks silence following shock closure of Sheffield food hall
The owner of a recently closed Sheffield food hall has spoken out for the first time following its sudden shutdown - describing his heartbreak and sharing his sorrow over staff left jobless and unpaid.
Jonathan Perry, the founder of Department, spoke exclusively to The Star in a deeply emotional interview after the business, based in the former Kommune venue on Angel Street, abruptly ceased trading just two months after a major relaunch.
Fighting back tears, Mr Perry said: “I am completely distraught and I truly feel for everyone involved.”
In a brief Instagram post shared at the time, the Department team blamed “ongoing trading challenges, reduced footfall, the inability to secure essential funding and a number of external factors” for the closure.
Speaking to The Star, an anonymous former Department worker said: “The closure came as a shock, but not a complete surprise. Staff had been raising concerns about declining footfall and poor marketing for some time.
“Staff raised a lot of concerns to the owners about not having enough people coming in: the vendors, the bar staff, everyone could tell something was going to happen. But it just happened faster than anyone expected.”
When asked when staff were told about the closure, they said: “Everyone, including management, found out at the same time - around 6pm or 6.30pm on a Monday night. We were told it was effective immediately.
“That was it, we had no jobs the next day. It was literally less than 24 hours’ notice.”
Mr Perry echoed that the news was a surprise for everyone, including himself.
“It was a shock for everyone, not just the staff we had to let go,” he said.
“Of course, no one opens a business just to close the doors - I’m absolutely devastated.”
“We did everything we could.”
The revamped food hall opened its doors on May 9 after a complete renovation of the former Kommune space, promising a new era of high-end food, drink and events in Sheffield city centre.
But according to the owner, the numbers simply didn’t stack up.
“There was a high expectation for the site, and we just didn’t perform,” he said.
“We were under huge financial pressure, and we assumed we’d be given some additional funding for the first few months which we weren’t.
“We needed that money to support the growth at the start of the business, without it, it was impossible.”
Despite heavy investment into a bespoke events space inside the building, Mr Perry said there simply wasn’t time to allow the venue to reach its potential.
“We truly did everything we could, and had to make some really hard decisions,” he said.
The future of the building
The fate of the Castlegate building, which Department was based in, remains uncertain.
“It’s a gorgeous building that has fallen on hard times recently,” said Mr Perry.
“It deserves to be filled and used to its full potential, whatever that may be.”
But the challenges for hospitality, he said, went far beyond just one site.
“Hospitality now is a completely different game. It’s unknown, and it’s tough,” he said.
“You can assume you know what you’re doing because it worked in the past, but you just can’t predict anymore.”
He continued: “There are so many reasons it’s hard to be in hospitality at the moment - rising utility bills, staff costs, and this particular building was also very large, which meant massive overheads.”
What went wrong?
When asked what he believes went wrong, Mr Perry was candid.
“I will hold my hands up. There is no excuse, so I won’t try to make any,” he said.
He did however, acknowledge that the May reopening may have clashed with Sheffield’s seasonal rhythms.
“We opened in summer when no students were around, and lots of people already had events booked,” he explained.
“We also didn’t have any outdoor space so during the heatwaves we’ve been having, people were working from home in their gardens, not coming out to co-working spaces.”
He added that while Department had hoped to build its brand on events and community-led experiences, it didn’t have the financial runway to bring those plans to life.
“It’s a real shame, because we put lots of time and effort into the event space in particular, but never got to see it come to fruition,” he said.
Department marketed itself as a high-end destination for food, drink and co-working, but according to the former employee, failed to reach its intended audience.
“I think they tried to aim for an upper-market crowd - business owners or corporate workers - but that didn’t seem to land,” they said.
“We’re in a student-heavy city so many of us kept saying we needed to market to students more. Simple things like having a TikTok account instead of just using Instagram, but suggestions were ignored.”
Local businesses need support
Mr Perry ended with a plea not for sympathy, but for support to help secure the future of independent venues like Department.
“These kinds of places are relying even more on support from people,” he said.
“Everyone is struggling at the moment and people aren’t able to go out as much. But for places like this to stay open, they need support.
“Hopefully the next landlord can make it great, I really want to see someone succeed with that building. It deserves life - it’s an important part of Sheffield’s community.”
Staff reactions
Department’s closure has left a bitter taste for many former staff, who say they were left unpaid and are now facing financial crisis.
One ex-employee said they were due to be paid on the 27th of the month, but this was delayed, then ultimately cancelled the day the business shut.
A liquidation company is expected to pay these wages instead.
“They told us it had been taken over by a liquidation company and they couldn’t pay wages right now,” they said.
They added that other colleagues were also left with financial worries now.
“Some of the people I worked with are paying private landlords and have nearly lost their homes,” they said.
“Others had to borrow money from parents to pay rent. I know people who had to cover two rents due to university arrangements and didn’t even have enough for one.”
The former employee added: “I’d already been thinking about leaving because of how quiet it was and the stress was impacting me. But this wasn’t how I expected to go.
“I’ve never been through liquidation or redundancy before. You just can’t prepare for this.”
They said the sudden redundancy has forced them, and others, to apply for government support for the first time, while searching for another job.
The lack of communication and failure to act on staff concerns has left a bitter taste.
They said: “There were plenty of opportunities for the owners to listen and adapt and people were trying to help. They just didn’t act on it, and now people are left jobless and unpaid.”
Other ex-employees have taken to the Instagram comments of Department’s final post, confirming what this source has said.
“I can confirm I haven’t been paid,” one said,
“Of course they haven’t paid us,” said another.
When asked about this, Mr Perry confirmed that the liquidation company would be in charge of payment of outstanding wages.
He did, however, express genuine sympathy for those affected by this: “This isn’t about me, it was always the staff and the people that made it,” Mr Perry said.
“We are currently working through the process, but my main priority is making sure all the staff are looked after throughout.”
Public reactions
Public comments on Department’s final Instagram post reflect a mix of sadness and frustration.
“I absolutely loved this place. Sending love to Department vendors and staff, always absolutely lovely,” said Alice Daif.
Angela Wragg added: “Sad news - I really hoped it would work this time.”
While many mourned the loss of what they saw as a promising venture, others were more critical.
“No surprise. Half the vendors weren’t open on Saturday evenings, prices were way up, and there was no atmosphere anymore,” said Rob.
As liquidation discussions continue, the future of the site - and the people affected - remains uncertain.