Frankie and Benny’s owner to close 125 of its restaurants after huge hit to the hospitality sector from coronavirus
FRANKIE and Benny’s owner The Restaurant Group has confirmed plans to close 125 of sites - putting 3,000 jobs at risk.
The Restaurant Group owns other dining brands including Chiquito and Garfunkel's and has 284 restaurants in the UK.
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But it says a review of its restaurants found 210 were either underperforming, had unfavourable lease terms or weren't expected to make a profit going forward.
Of these, 125 will close under the company voluntary agreement (CVA), which the struggling chain has proposed taking out today.
This is a legal process that allows a company to reach a compromise or agreement with some or all of the people it owes money.
Plans will be voted on before they go ahead on June 29, and up to 3,000 jobs could be lost.
The future of 85 sites remains in the balance while negotiations on rent reductions and revised leases takes place.
High street closures in 2020
HERE'S a round-up of some of the big names on the high street that have gone under this year:
- Department store chain Beales went into administration in January with 23 shops and 1,052 jobs at risk
- High end fashion brand Ted Baker said it plans to axe 160 jobs in February
- Brighthouse and Carluccio’s went into administration at the end of March
- Mobile phone retailer Carphone Warehouse said in March that it'll close all 531 standalone stores in April
- Debenhams entered administration for the second time in 12 months in April, and has since announced a number of store closures
- Struggling shoe shop Office put itself up for sale in April 2020
- Oasis and Warehouse closed down in April 2020 with the loss of 1,800 jobs
- Cath Kidston closed all 60 shops in April 2020 with the loss of 900 jobs
- said in May 2020 that it would have to lose 900 roles as high street closures loom
It currently has around 284 restaurants made up of the following brands; 226 Frankie & Benny's, 23 Chiquito's, and 35 restaurants made up of Coast to Coast, Garfunkel's, Filling Station, Firejacks, and Joe's Kitchen.
Of these, 125 are expected to close under the CVA, and the future of 85 sites remains in the balance while negotiations on rent reductions and revised leases takes place.
Around 74 sites are unaffected, which means around 159 of the chain's restaurants are safe for now.
In addition, the Group owns around 150 airport concessions and pub operations, as well as around 150 Wagamama branches - all of which are unaffected.
The Sun has asked for a full list of the branches expected to close and we'll update this story as soon as we know more.
Coronavirus has hit the high street hard with non-essential firms forced to go into lockdown from March 23, although restaurants are allowed to operate a takeaway service.
They're not expected to be allowed to reopen until at least July 4.
Just last month, Zizzi and Ask Italian's owner "called in restructuring experts".
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While Carluccio's became the first restaurant chain to collapse into administration during the coronavirus crisis, appointing FRP Advisory to oversee the process on March 30.
Andy Hornby, chief executive of The Restaurant Group said: "The issues facing our sector are well documented and we have already taken decisive action to improve our liquidity, reduce our cost base and downsize our operations.
"The proposed CVA will deliver an appropriately‐sized estate for our
leisure business to ensure we are well positioned despite the very challenging market conditions facing the casual dining
sector."