Gourmet Burger kitchen to close 17 branches putting 250 jobs at risk
The group has announced plans for a Company Voluntary Arrangement - an insolvency procedure which allows struggling firms to dump unprofitable stores
THE future of Gourmet Burger Kitchen (GBK) has been thrown into doubt as the fast-food chain has earmarked 17 restaurants for closure - which would impact 250 jobs.
GBK, which is owned by South Africa's Famous Brands, operates more than 80 stores and employs 2,000 people.
But it's become the latest firm to embark on a store closure plan.
The group has announced plans for a Company Voluntary Arrangement (CVA) - an insolvency procedure which allows struggling firms to dump unprofitable stores.
Creditors will vote on the 17 proposed store closures at a meeting on November 9, with all restaurants trading as normal in the meantime.
GBK's managing director Derrian Nadauld said: "Given the challenging UK casual dining environment and over-rented UK restaurant estate, we are having to take tough but necessary actions to reduce our fixed cost base and restore long-term profitability. "
Store closures at GBK would represent the latest in a long line of casual dining firms to shut restaurants this year.
Gaucho, Hummus Bros, Prezzo, Byron and Jamie's Italian have all fallen on hard times as costs have rocketed off the back of the Brexit-hit pound, while consumer confidence has nosedived as the economy falters.
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But it's not just restaurant chains that are faltering. Upmarket bakery chain Patisserie Valerie told investors earlier this month that it needed a cash injection to keep its 200 stores open.
Meanwhile, clothing retailer Coast went into administration earlier this month.
The Press Association also reported just a few weeks ago that Claire's Accessories is considering taking out a CVA, although the firm denied it has any plans to do this.
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