The owner of Frankie & Benny's has announced that it will be permanently closing 125 of its restaurants across the UK, putting up to 3,000 jobs on the line.
The Restaurant Group said it was seeking approval from its landlords for a deal that would let it reduce the number of restaurants it runs, and negotiate lower rents for many of those left over.
Bosses said the decision was made as the hospitality industry faces “well documented” problems after the coronavirus pandemic forced many businesses in the sector to close their doors to customers.
If landlords approve the deal, known as a company voluntary arrangement (CVA), it will leave the firm's leisure arm with about 160 sites, PA reports.
It will also allow it to exit about 25 restaurants which have already been closed.
The Restaurant Group also owns pan-Asian chain Wagamama, and runs several pubs and concessions in airports. However, it has confirmed that these will not be affected by the news.
The stores that will close are “principally” Frankie and Benny's restaurants, it added.
“The issues facing our sector are well documented and we have already taken decisive action to improve our liquidity, reduce our cost base and downsize our operations,” said Andy Hornby, chief executive of The Restaurant Group.
“The proposed CVA will deliver an appropriately-sized estate for our Leisure business to ensure we are well positioned despite the very challenging market conditions facing the casual dining sector.
“I would like to wholeheartedly thank all of my TRG colleagues for their continued understanding and extraordinary commitment during this unprecedented period.”
The British Property Federation said it had been talking to The Restaurant Group before it proposed the CVA, but it would be up to individual landlords to decide how to vote on the deal.
The federation's chief executive Melanie Leech, said: “These situations are never easy, particularly now for the retail and hospitality businesses on our high streets at the sharp end of the Covid-19 pandemic.
“Property owners, however, need to take into consideration the impact on their investors, including the millions of people whose savings and pensions are invested in commercial property, as they vote on any CVA proposal.”
