UK restaurant chain with 28 branches plunged into administration | UK | News
A UK restaurant chain with 28 branches across the country has gone into administration. The food company, founded in 1999, is now under the control of co-managers Alvarez & Marsal Europe LLP, according to a May 8 post in The Gazette.
Earlier this week, it was announced that The Real Greek would close nine restaurants, resulting in 151 job losses. However, the chain was rescued by the owners of Côte Brasserie, who bought 19 of the 28 outlets, saving 358 out of 509 jobs. Real Greek’s former owner, Fulham Shore, signed a rescue deal with Côte Brasserie’s parent company, The Karali Group, last week.
The restaurant chain serves Eastern Mediterranean cuisine, including traditional dishes such as souvlaki and meze. The Real Greek says its goal is to “bring people together over meals that will take you to Greece” with “the friendly Greek philosophy of hospitality.”
Four branches of the London-based chain will close in London, including those in Dulwich Village, Spitalfields, The Strand and Westfield White City. Other branches include The Real Greek restaurants in Bristol, Solihull, Gloucester Quays, Glasgow and Edinburgh.
Industry publication Driving force He also reported that the chain’s central kitchen would also be closed.
Fulham Shore also owns Italian restaurant brand Franco Manca. This will close 16 branches and cause 225 people to lose their jobs. The Real Greek is reportedly suffering further from the current poor trading conditions.
Fulham Shore Chief Executive Marcel Khan said: “This transaction will enable Fulham Shore to focus its energy and investment on Franco Manca and its significant growth potential, while putting the business on a more sustainable footing for the future.”
Mr Khan said his London-based company was “delighted to hand it over to Karali with real momentum”.
“We will now do everything we can to support our colleagues affected by this process and we believe that both the brand and its teams will be in very safe hands as the work moves to the next phase.”
Fulham Shore’s Japanese parent company, Toridoll, has previously said the business was hit by rising costs including business rates, energy bills and staff wages; these concerns have also been voiced in the UK hospitality industry.
Toridoll said: “High levels of inflation in the UK in recent years, driven by rising energy and food prices as well as increases in labor costs resulting from increases in the minimum wage, have created a more challenging operating environment for the hospitality sector than originally anticipated.”
