Get all your news in one place.
100's of premium titles.
One app.
Start reading
Evening Standard
Evening Standard
National
Imogen Braddick

Thousands of jobs at risk at Cafe Rouge and Bella Italia as owner moves to appoint administrators

The owner of Bella Italia and Cafe Rouge has filed its intent to appoint administrators, putting 6,000 jobs at risk.

Restaurant chains have been hammered by the coronavirus pandemic after the lockdown forced them to shut their doors in March.

Leaders in the sector have warned that social distancing measures on reopening will also significantly hinder profitability in the industry.

Casual Dining Group, which also operates the Las Iguanas chain, said the move will give the firm 10 days breathing space to consider “all options” for restructuring.

Earlier on Monday, the company confirmed that it is working with advisers from corporate finance firm AlixPartners over a potential restructuring programme aimed at putting the restaurant group on a sustainable footing.

A spokeswoman for Casual Dining Group said: “As is widely acknowledged, this is an unprecedented situation for our industry and, like many other companies across the UK, the directors of Casual Dining Group are working closely with our advisers as we consider our next steps.

“These notifications are a prudent measure in light of the company’s position and the wider situation.

“These notifications will also protect the company from any threatened potential legal action from landlords while we review the detail of the Government advice, and formulate a plan for the company in these difficult times.”

It is understood that a variety of arrangements are still being looked at by the Casual Dining Group, including company voluntary arrangement (CVA) restructuring deals or the administration of specific brands.

The group, which has furloughed the majority of its staff, traded from around 250 sites across the UK before the lockdown.

The announcement comes amid reports that owner of rival chain Giraffe, Boparan Restaurants, is reportedly closing on a deal to buy Carluccio’s in a move which would save around 900 jobs.

Sky News said Boparan is looking to conclude a deal which would include taking over the Carluccio’s brand, head office and approximately 30 restaurants.

Last month, insolvency experts from FRP Advisory were appointed as administrators to Carluccio’s, which had around 70 sites before the pandemic.

Carluccio’s and administrators FRP declined to comment.

Sign up to read this article
Read news from 100's of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.