Thousands of jobs are at risk after two high high street chains collapsed into administration today (March 30).
Rent-to-own retailer Brighthouse, which has a shop in Broadmead, and Italian restaurant group Carluccio's, which has a branch at Cribbs Causeway, employ 4,500 people between them.
Both chains have reportedly blamed the outbreak of coronavirus for financial difficulties, according to the BBC.
Julie Palmer of corporate recovery business Begbies Traynor said: "Coronavirus was the final nail in the coffin for BrightHouse."
Around 200,000 Brighthouse customers have been told they will need to continue making monthly payments to the administrators if they want to keep household goods.
If people fail to make repayments even though Brighthouse is in administration, it could lead to extra charges, the BBC reports.
Meanwhile, Carluccio's has confirmed it appointed administration experts FRP Advisory late last week.
The chain has been struggling since the outbreak of coronavirus and it emerged earlier this month that it failed to pay its quarterly rent bill.
It is understood Carluccio's staff will still be eligible for the Coronavirus Job Retention Scheme, meaning they would get paid up to 80 per cent of their salaries, if the company was in administration.
Geoff Rowley, partner at FRP Advisory said: “We are operating in unprecedented times and the issues currently facing the hospitality sector following the onset of Covid-19 are well documented.
“In the absence of being able to continue to trade Carluccio’s, in the short term we are urgently focused on the options available to preserve the future of the business and protect its employees.
“We welcome the latest update on the coronavirus job retention scheme and look forward to working with HMRC to access the support it provides for companies in administration and their employees.
“As this fast-moving situation progresses we will remain in regular communication with all employees and key stakeholders, and will provide a further update in due course.”
Carluccio's restaurant at Quakers Friars had already closed down.
The announcement comes less than a week after Chiquito announced it was closing all its restaurants permanently.
