Major UK restaurant chain to shut 16 instantly as 225 jobs hit – full record
Franco Manca has closed 16 of its 70 UK outlets as part of a wider restructuring plan after parent company Fulham Shore entered a Company Voluntary Arrangement (CVA), with up to 225 jobs impacted
16 of the 70 Franco Manca restaurants will shut(Image: Getty)
A prominent UK restaurant chain closed 16 of its 70 branches yesterday (May 17) as part of a broader restructuring scheme. The company previously stated it has been hit by “disproportionately high” taxes and a lack of support for eateries.
It was confirmed last month that Franco Manca would close 16 restaurants after its parent company, Fulham Shore, entered into a Company Voluntary Arrangement (CVA). The affected restaurants were deemed “no longer sustainable”, with up to 225 jobs expected to be impacted.
Company bosses have criticised the burden of VAT, arguing that the UK hospitality sector faces higher taxes compared to Europe, in addition to reduced business rates relief and increases to the National Living Wages and National Insurance contributions.
Franco Manca’s CVA proposal received backing from over 90% of creditors. Marcel Khan, chief executive of Fulham Shore, said the decision to shut 16 restaurants was due to economic pressures.
He previously added: “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.”, reports the Express.
“With this agreement in place, we will put the business back on a firm footing and press ahead with strengthening our customer offer and performance.”
Meanwhile, Paul Berkovi, managing director of advisors Alvarez & Marsal, commented: “Against a challenging backdrop for the sector, this is an important step for Franco Manca, enabling the business to complete its financial restructuring and secure the platform for its operational transformation.”
Fulham Shore has also recently placed Franco Manca’s sister brand, The Real Greek, into administration.
Karali Group, the proprietor of Cote, purchased the chain but declared the closure of nine out of its 28 restaurants.
Full list:
- Battersea
- Bishops Stortford
- Brixton
- Broadway Market
- Bromley
- Cheltenham
- Chiswick
- Didsbury
- Glasgow
- Hove
- Kilburn
- Lincoln
- New Oxford Street
- Plymouth
- Stoke Newington
- Tottenham Court Road
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