It has been reported that the restaurant chain, Carluccio’s, faces collapse as it looks set to appoint FRP as administrators. Having entered a CVA in 2018, closing a third of its restaurants, it is said to be working with FRP, looking at all options given the current climate.
In spite of the CVA and restaurant closures, Carluccio’s was struggling financially prior to the outbreak of coronavirus as were many restaurants in the casual dining sector. With a fall in consumer spending, higher business rates and increases in the National Living Wage being cited as the main financial issues with the sector, prior to the outbreak.
With all restaurants being forced to close as of 23 March, this has left many in a difficult position. Prior to the government’s pledge to pay 80% of furloughed workers salaries, Chief Executive of Carluccio’s, Mark Jones told the BBC, the chain “was days away from large-scale closures” without state aid.
It is reported that earlier this week, staff from the chain saw their wages for the past month halved as part of cost cutting measures to mitigate the impact of the pandemic.
Chief executive Mark Jones confirmed he would not receive pay for the month in an attempt preserve cash.
Carluccio’s currently employs 2,000 staff across the UK who all face redundancy is the restaurant chain closes its doors permanently.
The restaurant chain was founded by Italian chef Antonio Carluccio in 1999, growing into a familiar brand on UK high streets. The chain was sold in 2010 to Dubai-based Landmark Group for £90m.