Italian restaurant chain Carluccio’s could close up to 34 UK restaurants as part of a company voluntary arrangement (CVA) being pushed by owners Landmark Group.
The Dubai-based conglomerate has pledged to invest £10m in the chain conditional on landlords backing the CVA.
KPMG is overseeing the CVA proposal and said the restaurant is looking to pay as little as two thirds of the rent on 34 of its 103 sites across the UK following a strategic review of its operations. Restaurant sites earmarked for closure include the Metrocentre in Gateshead, Gloucester Quays, and Beverley in Yorkshire. Outlets in the Gulf, Turkey and Ireland will not be affected.
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“This CVA is designed to tackle the cost of the company’s leasehold obligations across its restaurant portfolio, which if successful, will allow the business to move forward across a core, more profitable estate,” restructuring partner Will Wright said. “It forms one element of a wider turnaround plan which, if the CVA is approved, will see an injection of funding into the business from the company’s majority shareholder, to fund an extensive and far-reaching investment and growth plan.”
Carluccio’s was launched in 1999 by the chef Antonio Carluccio, who died last year. It was floated on the stock market in 2005 and acquired by Landmark Group for £90m in 2010.
It is the latest casual dining restaurant to announce widespread closures this year with the likes of Jamie’s Italian, Byron and Prezzo all undertaking CVAs.
Creditors will vote on the proposals on 31 May.
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