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Birmingham Post
Birmingham Post
Business
Hannah Finch

Burger King may close 25 UK restaurants in restructure

The future of 25 Burger King branches is in the balance as it struggles to bounce back from the Coronavirus pandemic.

The fast food chain is looking at a restructuring deal that could lead to the closure of 25 branches closing and putting 1,600 jobs at risk, The Mirror reports.

Burger King's UK chief executive, Alasdair Murdoch s previously spoken about potential cuts on the back of the pandemic, admitting the business has been severely hit by lockdown.

In July, Mr Murdoch warned that up to 1,600 jobs could be lost as a result of the pandemic.

He said he economic damage stemming from the crisis could ultimately force the company to permanently close up to 10% of its stores.

"We don't want to lose any (jobs). We try very hard not to, but one's got to assume somewhere between 5% and 10% of the restaurants might not be able to survive," he admitted.

"It's not just us - I think this applies to everyone out there in our industry."

"I don't think you can ever get over the top of this problem," he added, speaking about Burger King's lockdown recovery plan

The chain is yet to reopen all 530 of its UK branches closed at the height of lockdown and has now hired advisers from AlixPartners to review 25 restaurants on behalf of its main UK owner.

Sources told Sky News the firm is considering a company voluntary arrangement (CVA) or, more likely, a pre-pack administration deal.

It is understood that the restructuring could result in up to 10 permanent closures.

But tit is understood that the wider chain plans to open at least 30 new drive-thru sites in the UK over the next 12 months.

Burger King's main franchisee in the UK is the private equity firm Bridgepoint, the former owner of Pret A Manger.

It owns around 118 of Burger King's 530 UK outlets, which it acquired in 2017.

Mirror Money has contacted Burger King for a comment.

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