Just over a month since the last news hit the media about the state of Carluccio's administration and we hear of a promising deal in the line-up for the struggling high street restaurant chain.
The owner of the Giraffe restaurant chain, Boparan Restaurants, led by tycoon Ranjit Boparan, is said to be making a deal to takeover the Carluccio's brand, head office and around 30 of its restaurants.
If this deal is set in stone, around 900 employees will be saved and there will be a short-term guarantee of the brands future.
FRP Advisory declined to comment.
Sky News reports that FRP Advisory, the appointed administrators of Carluccio's, gave a deadline of 5pm Wednesday for all prospective bidders to put in an offer to save the struggling restaurant chain.
This comes after fear arises that a buyer will not be found. Many of its rivals are falling into the same trap; it expected that they too will not be able to survive the coronavirus pandemic.
Carluccio's has gone into administration, blaming challenging trading conditions, made worse by COVID-19.
FRP Advisory are now said to be looking urgently at options for the firms' future, including mothballing the business using government support and trying to sell all or parts of it.
The government's job retention scheme will pay most of the firms' 2,000 employees during the time the options are explored.
Carluccio’s, the Italian restaurant chain, is facing collapse after government restrictions aimed at reducing the spread of coronavirus have forced all restaurants and café to shut.
Administrator, FRP advisory are working alongside Carluccio’s to support them in assessing all options for the restaurant’s future amid the current climate. More than 2,000 jobs are at risk of being lost. A collapse is seeming the most likely option right now, it is believed.
Pre-outbreak, the 73-branch-chain were struggling. Staff from the chain saw their wages for the past month cut in half as a cost cutting measure to try and mitigate the impact of COVID-19. Mark Jones, CEO confirmed he would go without payment for the month to preserve cash for the company.
In 2018 a Company Voluntary Arrangement (CVA) was used by the chain, as part of a rescue plan. 30 branches were closed. The same could be happening now… Just last week it was said how the firm was just days away from large-scale closures.
‘’I realise this is going to be a terrible shock to all of you [staff]. The rapid decline in sales and then the closure of our restaurants has exhausted the company’s cash resources, and we have been struggling to make a payroll this month.’’
The casual dining sector has suffered recently due to a fall in consumer spending, higher business rates, increases to the National Living Wage and tough competition. Prezzo and Byron Burgers used CVAs to close restaurants whilst Jamie’s Italian went into administration last year.