|Chiswick Branch Of Carluccio's Threatened With Closure|
Chain of Italian restaurants plans to shut one-third of its branches
Carluccio's has confirmed that it will close 34 of its restaurants, nearly a third of its overall total. The Chiswick and Westfield branches are two of those reportedly being considered for closure.
The Italian restaurant chain has been hit by the slump in casual dining that has affected Prezzo, Jamie's Italian and Byron as well as Jackson & Rye.
The company has entered into a Company Voluntary Arrangement which allows it to open discussions with its creditors about deferred payments and with landlords about the terms of existing leases. The Chiswick branch, which opened in 2006, is understood to have one of the highest rents of any of the chain's restaurants.
While a full list has not yet been disclosed, reports suggest that a number of London branches could be affected, including one in Westfield Shepherd's Bush as well as Chiswick.
Chief executive Mark Jones, who joined the company earlier this year, said: “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, its people, its creditors and its customers.”
KPMG restructuring partner Will Wright said: “Carluccio’s is a well-established and much-loved part of the UK high street. But like many other businesses in the casual dining sector, in recent times the company has been adversely impacted by a combination of well-documented pressures including a gradual decline in consumer spending and increasing competition, coupled with the rising costs of labour, raw materials, rent and business rates."
Creditors will vote on the proposals on 31 May.
May 18, 2018