Frankie and Benny’s owners plan to close 125 restaurants
The Restaurant Group will aim to push down rents across remaining restaurants after feeling the affects of the coronavirus pandemic
Thousands of jobs could be put at risk after the owner of Frankie and Benny’s announced plans to permanently close 125 restaurants.
Describing themselves as having been on the “sharp end of the Covid-19 pandemic”, The Restaurant Group said the decision had been made in order to cut what it pays in rent.
It is said to be entering a company voluntary arrangement with landlords, closing 125 restaurants and aiming to negotiate better deals with remaining landlords across its estate.
It’s thought that up to 3,000 jobs could be affected by the restructure.
The Restaurant Group chief executive, Andy Hornby, said: “The issues facing our sector are well documented and we have already taken decisive action to improve our liquidity, reduce our cost base and downsize our operations.
“The proposed CVA will deliver an appropriately sized estate for our leisure business to ensure we are well positioned despite the very challenging market conditions facing the casual dining sector.”
He added: “I would like to wholeheartedly thank all of my TRG colleagues for their continued understanding and extraordinary commitment during this unprecedented period.”
The hospitality industry has been struggling after Prime Minister Boris Johnson ordered the closure of bars, restaurants, and pubs, ahead of the lockdown in March, to curb the spread of coronavirus.
Three months ago, The Restaurant’s Group’s other chain Chiquito fell into administration.