Casual Dining Group: Notice of Intent
The holding company 'Casual Dining Group' is working with Alix Partners on a potential restructuring programme for the group of restaurants which is the latest to suffer meltdown during the lockdown, which has seen all of its restaurants closed for business. The group, whose brands include Cafe Rouge, Bella Italia and the Las Iguanas chain, employs about 6,000 people and a spokesperson said that breathing space is needed for it to consider its options.
The measures taken have been variously described as 'unprecedented' and 'prudent', but we could also add 'inevitable' to that list as the chain becomes the latest victim of the pandemic and the inability to serve any customers since March of this year. The group have filed Notice of Intent to appoint Administrators, giving the business ten days to put a restructuring plan into place. After that ten days, of course, the firm could let the notice lapse, if no viable restructuring plan can be drawn up. It has been suggested that one of the options being considered is a Company Voluntary Arrangement, which could mean landlords of some or all of the outlets facing a haircut, but the Administration of some of the brands has also been mooted.
This is just the latest of a number of well-known eateries, such as Jamie Oliver's restaurants, the burger chain Byron, and the Chiquito and Frankie & Benny's chains, having closed sites or put in place emergency measures.