An upmarket Italian restaurant in Birmingham city centre has been repossessed after running up more than £23,000 in debt.

Don Salvo, on Temple Row, has crashed out of business owing money on its lease and to puzzled suppliers who found themselves locked out when they arrived with fish and vegetables after an early morning visit by bailiffs.

A legal notice to the landlord hung in the window of the eatery, and tables remained set out ready for diners with white linen tablecloths and cutlery before steel roller shutters were pulled down on Friday.

Sicilian-born owner Don Salvo could not be contacted but the restaurant’s sister outlet in Wolverhampton remains open for business.

Eyebrows were raised when Don Salvo opened 18 months ago opposite one of the city's best know Italian restaurants, San Carlo, which is a favourite among footballers and celebrities.

As creditors began the process of clawing back cash from the firm, San Carlo’s manager said he was not surprised by the failure.

“You never want to see a restaurant fail but we were surprised when they opened up so close doing a similar thing,” said Paolo Recina. “We’ve been here 16 years and are very well established so, yes, it was a bold move by them.

“Don Salvo hasn’t been very busy and there’s only so long that can go on for if you are running a restaurant. We haven’t really felt it so far, but I know a lot of restaurants are suffering because of the credit crunch.”

The restaurant aimed at the top end of the eating out market, with dishes on its a la carte menu including fillet rossini at £17.90, but also sold pizza and pasta dishes.

Customers were also offered a fixed price Sunday lunch menu, with three courses costing £15.95.

A spokesman for London-based solicitors Lovells said: “Emilio Largo Ltd, trading as Don Salvo, is our client’s tenant of the ground floor premises of Somerset House, Birmingham.

“On Wednesday October 22 our client took steps to forfeit the lease of the premises. We are not in a position to comment further on the status of Emilio Largo Ltd.”

Fish supplier Terry Howell, who owns Salmon Incorporated, based in Birmingham’s wholesale markets, said he was owed cash by the firm but did not want to reveal how much.

“One of our delivery drivers went to drop some fish off for them and the place was locked up,” said Mr Howell. “I’ve not heard anything from them since then. To be honest, they’ve been hit and miss with payments for the last few weeks and there was no set pattern.

“Unfortunately, it’s par for the course at the moment with people cutting back on what they’re spending.”