Carluccio’s saves 30 restaurants in rescue deal but over 1,000 jobs will still be cut
CARLUCCIO'S has been bought in a rescue deal to save 30 restaurants - but a further 40 restaurants will close with 1,000 jobs lost.
Giraffe and Ed's Easy Diner owner Boparan Restaurant Group (BRG) has snapped up the high street chain in a move which has saved 30 restaurants and around 800 jobs.
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But insolvency advisor FRP Advisory says the move has resulted in the redundancy of 1,019 Carluccio's employees after it was unable to secure the future of the chain's other 40 restaurants.
The dining chain was founded in 1999 by late chef Antonio Carluccio and has been on British high streets for 20 years.
Today's announcement comes after it was feared the dining chain would go into administration after being hit by the coronavirus pandemic.
The restaurant chain had hired insolvency advisers to prepare for permanent closures or go out of business.
High street closures in 2019 and 2020
SADLY there's a long list of stores experiencing problems on the high street.
In 2019 and so far in 2020 we've seen:
- Forever21 close 350 stores with its UK branches also at risk
- Jamie Oliver's "Jamie's Italian" chain go bust, alongside his Fifteen and Barbecoa restaurants
- Links of London go into administration putting 350 jobs at risk
- Marks and Spencer close 35 more stores as it pushes forward with plans to axe 145 shops across the UK
- Dozens of Monsoon and Accessorize stores close
- There are fears Pizza Express could be next to go into administration as it "brings in emergency advisers"
- Hairdressing chain Supercuts went into administration in October putting 1,200 jobs and 220 salons at risk
- Maternity and baby retailer Mothercare collapsed into administration in November after 58 years on the high street, putting 2,500 jobs at risk
- Department store chain Beales went into administration in January 2020 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, with 39 stores to close
- 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
Phil Reynolds, joint administrator and partner at FRP, said: "The Covid-19 lockdown has put incredible pressure on businesses across the leisure sector.
"So it has been important to work as quickly and as decisively as possible in an extremely challenging business environment to secure a sale which ensures the future of the Carluccio's brand in the UK casual dining scene retains a significant network of sites across the country and, critically, transfers a considerable number of jobs.
"We wish the team all the best as part of the BRG."
Satnam Leihal, managing director of BRG, added: "We welcome Carluccio's colleagues to BRG.
"This acquisition is in line with our strategy to grow our restaurant group with quality brands.
"Whilst it is an extremely challenging time for the sector, we believe quality hospitality businesses will recover in the long term as people return to eating out."
The dining chain was hit by the coronavirus crisis after restaurants and fast food chains were ordered to temporarily shut up shop to help stop the spread of the deadly bug.
So far they've only been allowed to operate on a takeaway basis, which has seen many temporarily shut their doors to paying punters - here's which firms have reopened.
Carluccio's has refused to pay its quarterly rent bill while it's been out of action, joining a number of other retailers struggling to stay afloat during the COVID-19 crisis.
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Following the temporary closures, Carluccio's told staff they would only receive half of their usual pay for March.
In a note to employees at the time, boss Mark Jones said: "I realise this is going to be a terrible shock to all of you.
"The rapid decline in sales and then the closure of our restaurants exhausted the company's cash resources, and we have been struggling to make the payroll payment this month."