Carluccio’s announces plan to restructure its UK business

17th May 2018

We have today announced a plan to restructure our UK business.  The majority of our restaurants will be unaffected by this plan and will remain open to serve our guests as normal.

However, we have had to make the very difficult decision to close a minority of our restaurants, which are lossmaking due to high rents and the other well-documented pressures sweeping the UK restaurant industry. 

The decision to close them in no way reflects the hard work and dedication of our teams at these restaurants or their popularity with our guests.  We are very sad to have to do this and will do all we can to find staff at affected restaurants alternative positions at our other locations.

The action we are taking will protect the wider business and ensure we can continue to invest in our restaurants – in their care and their upkeep – and in our food, people and training. This will enable us to maintain Carluccio’s position as a leading Italian casual dining restaurant with our signature all-day dining experience.
 

The details
Following a strategic review, Carluccio’s is entering a ‘landlord-only’ CVA (Company Voluntary Arrangement) which will impact 34 of our 103 UK restaurants. The majority of our restaurants and no other creditors will be affected. 

During this process, our restaurants will continue to welcome our guests as normal and we remain a profitable business.

Here’s an explanation from our CEO Mark Jones: “Carluccio’s remains a very strong brand known for high-quality food. Independent research shows it is extremely well regarded by the British public in the premium Italian dining space.

“However, the business is not immune from well-documented pressures sweeping through the casual dining sector and indeed much of the wider UK high street, including retail. 

“Regrettably this is the only course of action available and if approved, will safeguard the future of the group, protecting this strong core business. It is therefore in the best interests of the company, our people, our creditors and our customers.”

If the CVA is approved by creditors, it will pave the way for a substantial investment programme, which will see all remaining restaurants refurbished over a period of time. 

As part of the CVA, we have offered a commitment to our 34 affected landlords to continue to run these restaurants for a period of up to six months.  In addition, we would welcome constructive discussions that might allow us to agree new terms, enabling us to stay in these sites in the longer term.

We will provide further updates as and when we can.

Grazie.



KPMG is handling the process on behalf of Carluccio’s.  For more information visit here.

 

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