Struggling restaurant chain Caluccio’s has been bought out in a rescue deal which will save 30 of its branches.
The Italian-style brand has been purchased by Giraffe and Ed’s Easy Diner owner, Boparan Restaurant Group (BRG), saving 800 jobs.
However, administrator FRP Advisory said it was unable to secure the future of the chain’s other 40 restaurants, resulting in 1,019 redundancies.
Why did Carluccio’s fall into administration?
The restaurant chain entered administration at the end of March after struggling to stay afloat due to the coronavirus lockdown. It blamed “challenging trading conditions, which had been exacerbated by Covid-19”.
Phil Reynolds, joint administrator and partner at FRP, said, "The Covid-19 lockdown has put incredible pressure on businesses across the leisure sector, so it has been important to work as quickly and as decisively as possible in an extremely challenging business environment to secure a sale.
"It ensures the future of the Carluccio's brand in the UK casual dining scene, retains a significant network of sites across the country and, critically, transfers a considerable number of jobs."
What will happen to the saved branches?
It has been reported in trade press that BRG purchased the 30 restaurants for around £3 million, and it plans to convert some sites to brands in its portfolio, including Slim Chickens.
Satnam Leihal, managing director of BRG, said, "We welcome Carluccio's colleagues to BRG.
"This acquisition is in line with our strategy to grow our restaurant group with quality brands.
"Whilst it is an extremely challenging time for the sector, we believe quality hospitality businesses will recover in the long term as people return to eating out."
Where will the restaurants be?
These are the locations of the 30 Carluccio restaurants that will form part of the BRG estate:
Cribbs Causeway, Bristol
Cheshire Oaks, Chester
Trinity Leeds, Leeds
London-Islington Development Kitchen
Marriott Regents Park
St Christopher’s Place
St Pancras Station
Manchester Trafford Centre
Stratford on Avon
Walton on Thames