Byron Burger will shut nine of its restaurants after falling into administration putting hundreds of jobs at risk, its owner has announced.
Famously Proper, the umbrella company which owns the high street burger chain and fried chicken brand Mother Clucker, said 218 jobs would be cut as a result of the closures. Just 12 Byron restaurants will remain open, with around 365 total staff.
The company was set up after private equity firm Calveton rescued Byron from a previous administration in 2020 following the impact of the Covid pandemic.
Its collapse was blamed on rises in costs, such as food and utilities, as well as a reduction in consumer spending due to the soaring cost of living.
Administrators from Interpath Advisory were appointed on Friday and confirmed the company has been sold in a pre-pack administration to Tristar Foods, a new company linked to Calveton.
Claire Winder, managing director at Interpath Advisory and joint administrator, said support would be offered to those impacted by the redundancies as a “matter of priority”.
In a statement, she said: “Like many other companies across the hospitality sector, Byron had seen a boost in trading following the end of the Covid lockdown measures.”
However, the sky-high inflation seen in 2022 saw costs spiral and resulted in reduced customer spend, which in turn placed significant cashflow pressure on the business.
“We are pleased to have concluded this transaction which will see the Byron name continue to trade on high streets across the country and which, importantly, has preserved a significant number of jobs.”
In July 2020, during the Covid pandemic, the chain closed outlets as part of a deal transferring 21 remaining sites and 551 staff to Calveton, which saw 650 jobs cut.
In 2016, the burger chain was met with major public backlash after dozens of its migrant workers were arrested in an immigration raid.
The Home Office confirmed 35 people from Albania, Brazil, Nepal and Egypt had been arrested on suspicion of immigration offences at restaurants in London
The sites set to close are:
- Bluewater shopping centre, Kent
- Edinburgh, Lothian Road
- London, Wembley
- Milton Keynes