Major restaurant chain confirms multiple UK closures | UK | News
Pizza chain Franco Manca is pushing for the closure of 16 restaurants. The update comes after the restructuring plan was given the green light by creditors.
Last month, parent company The Fulham Shore announced plans to close the premises as part of the company’s voluntary arrangement (CVA) process. The decision will also put the jobs of approximately 225 people at risk.
Before its closure, the pizza chain currently operated 70 restaurants. However, it said the UK had been hit hard by “disproportionately high” taxes and a lack of business rates relief for restaurants.
As a result, the affected restaurants are “no longer sustainable.” Franco Manca’s CVA proposal received the support of more than 90% of voting creditors, allowing it to move forward.
Last week, Fulham Shore placed sister restaurant brand The Real Greek into administration. It was quickly purchased by Cote’s owner, Karali Group, which announced the closure of nine of its 28 restaurants.
Fulham Shore CEO Marcel Khan said: “We are grateful for the support shown by our creditors today. Franco Manca is a fantastic brand with a strong heritage and loyal customer base.
“With this agreement coming into force, we will put our business back on a solid footing and continue to strengthen our customer offering and performance.”
Paul Berkovi, managing director of Alvarez and Marsal, said: “Today’s vote showed that a significant majority of the company’s creditors support the CVA, reflecting constructive engagement among stakeholders.
“In a challenging environment for the industry, this is an important step for Franco Manca, allowing it to complete the financial restructuring of the business and secure the platform for its operational transformation.”
Which Franco Manca pizza chain restaurants will close?
The following sites will be closed:
- battersea
- Bishops Stortford
- brixton
- Broadway Market
- bromley
- Cheltenham
- chiswick
- didsbury
- Glasgow
- hove
- Kilburn
- Lincoln’s
- New Oxford Street
- plymouth
- Stoke Newington
- Tottenham Court Road
