So, the next big CVA has been announced.
The owner of Giraffe and Ed’s Easy Diner has announced that it will close a third of its restaurants. It aims to close 27 of the eateries. It is expected that hundreds of the jobs will be lost
Hundreds of jobs have been placed on the line at restaurant chains Giraffe and Ed's Easy Diner as bosses prepare to axe a third of branches.
The business is owned by Boparan Restaurant Group (BRG) who bought the brands from Tesco in 2016.
Tom Crowley, chief executive of BRG, said: "We have been examining options for the two brands for some time and the CVA is the only option to protect the company.
"The combination of increasing costs and over-supply of restaurants in the sector and a softening of consumer demand have all contributed to the challenges both these brands face."
BRG also owns the famous fish and chip restaurant Harry Ramsden.
It its most recently available accounts, Giraffe and Ed's Diner, had annual turnover of £67.1 million.
So the casual dining sector is still under pressure with Giraffe and Ed's Easy Diner joining the ever growing list of companies that are closing restaurants
- Gourmet Burger Kitchen
- Byron Burgers
- Jamie's Italian
Meanwhile Wagamama does very well! Will landlords reject the CVAs? Will they be outvoted again?
Categories: What is a CVA or Company voluntary arrangement?