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Is Carluccio considering a CVA?

5 March 2018

Is Carluccio considering a CVA?

The BBC has reported that Carluccio's is the latest restaurant chain to be seeking turnaround advice from KPMG. 

Exactly what is being considered is not known but given the problems in the casual dining sector, especially Italian themed restaurants,  it is likely that the chain is considering closing some loss making outlets.  Whether a company voluntary arrangement is suitable remains to be seen.   The company has to be insolvent for a CVA to be considered and there is no indication of that yet. 

With so many Italian restaurants on the High Street from Pizza Express and Zizzi to small independents, this part of the market is saturated, says Stefan Chomka, editor of Restaurant magazine. And the same goes for mid-market burger chains.

Carluccio has not been on a massive expansion plan so it is likely that it may just try and exit some leases.  Owners of Frankie and Bennys, Chiquito have closed 40 restaurants over the last couple of years.

A trading update from Pizza Express will be watched closely as it seems to be bucking the trend so far.

Categories: Hospitality