This comes after South Africa’s Famous Brands revealed a 10.6% fall in sales for the restaurant chain last month. An operating loss of £2.24m was recorded, highlighting that GBK were underperforming. Property rates, labour and food costs were said to be the cause.
Now, Deloitte are understood to of been appointed to assist them with negotiating deals with landlords regarding rent cuts and site closures. GBK currently own over 100 sites. These negotiations could result in a company voluntary arrangement.
GBK are not the first to suffer from the adverse trading environment within the casual dining sector. Byron’s Burgers, Carluccio’s, Jamie’s Italian and Prezzo have already used CVAs to help them survive.
Many restaurants and jobs have already been wiped out in this sector…could a CVA save GBK?