Italian restaurant chain Carluccio’s is set to close up to 34 UK restaurants after its company voluntary arrangement (CVA) proposal was approved by shareholders.
In a vote yesterday, 91% of the restaurant chain’s creditors voted in favour of the restructuring plans proposed in the CVA. Last month, Property Week reported that Dubai-based owners Landmark Group had pledged to invest £10m in Carluccio’s conditional on landlords backing the CVA.
Carluccio’s chief executive, Mark Jones, said: “We are pleased that our proposal for a CVA has been approved by our creditors. This vote was vital to protect our strong core business and the Carluccio’s brand.
“The positive outcome enables us to kickstart an extensive programme of reinvigoration across our estate – with the aim of elevating the guest experience and underpinned by our brand ethos of minimum of fuss, maximum of flavour, championed by Antonio Carluccio.”
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.
Find out more - There’s nothing voluntary about CVAs for landlords
Landlords have agreed to cut rent bills by a third for six months on the 34 sites which will then close at the end of that period unless a new reduced rent deal is agreed.
Restaurant sites earmarked for closure include the Metrocentre in Gateshead, Gloucester Quays, and Beverley in Yorkshire.
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.