The Real Greek falls into administration as 9 UK eating places to shut and 151 jobs misplaced
The Real Greek restaurant chain will close nine of its 28 UK sites with 151 job lost in the latest blow for the hospitality sector – its central kitchen will also be shut down
The Real Greek will shut 9 restaurants(Image: PAUL GILLIS / Reach Plc)
The Real Greek is set to close nine of its restaurants resulting in 151 job losses, after the hospitality chain entered administration. Karali Group, owner of Cote, confirmed on Friday that it has brokered a rescue deal for the business following the administration of Japanese restaurant group Toridoll – the parent company of The Real Greek’s former owner, Fulham Shore.
However, Karali stated it would only salvage 19 out of The Real Greek’s 28 UK-based restaurants. The locations set for closure and those remaining open have not been disclosed.
The new proprietor announced the move will also lead to 151 redundancies, although it will secure the employment of 358 staff members. Industry publication Propel reported that The Real Greek’s central kitchen will also be shut down.
Last month, Fulham Shore revealed it was considering future options for the Greek chain. This announcement came as it initiated a company voluntary arrangement (CVA) restructuring process for sister restaurant brand Franco Manca, which will result in the closure of 16 outlets and the loss of 225 jobs.
Marcel Khan, chief executive of Fulham Shore, said: “The transaction will ensure that the business is placed on a more sustainable footing for the future, while allowing The Fulham Shore to focus its energy and investment behind Franco Manca and its significant growth potential.
“We’re pleased to be handing it over to Karali with real momentum.
“We will now do everything we can to support colleagues affected by this process and believe that both the brand and its teams will be in very good hands as the business moves into its next chapter.”
Toridoll stated earlier on Friday that The Real Greek had been hit harder due to the current poor trading conditions.
It explained: “In recent years, high levels of inflation in the UK, driven by rising energy and food prices together with increase in labour costs resulting from rises in the minimum wage, have created a more challenging operating environment for the hospitality industry than initially anticipated.
“The deterioration in the economic environment has had a more significant impact on the Greek restaurant brand The Real Greek than on the Franco Manca business,” Toridoll added.
Fulham Shore was purchased by Toridoll, with financial backing from investment firm Capdesia, in 2023 for £93.4 million.
Paul Berkovi, managing director at administrators Alvarez & Marsal, commented: “We have worked closely with The Real Greek’s management team and are pleased to have completed a transaction that secures a future for a restaurant group enjoyed by diners over many years.
“Our immediate focus as administrators will be to provide a smooth transition for the business and to support employees affected by site closures.
“We are grateful to all stakeholders for their constructive engagement throughout this process.”
