Coronavirus: Carluccio's rescued but 1,000 jobs and 40 branches axed

Tom Belger
Finance and policy reporter
A closed Carluccio's restaurant during the coronavirus pandemic, which has exacerbated the chain's problems. (Photo by Ross Kinnaird/Getty Images)

Italian restaurant chain Carluccio’s has been saved from collapse, but more than 1,000 jobs will be cut and 40 restaurants closed as part of a rescue deal.

Administrators FRP Advisory said Boparan Restaurant Group (BRG), owner of Giraffe and Ed’s Easy Diner, would take over the high street restaurant chain, according to PA.

It said 30 Carluccio’s branches and 800 jobs will be saved and are likely to reopen in future, the news agency reports.

But 40 restaurants, currently closed because of the coronavirus, are reported to be keeping their doors shut for good, resulting in 1,019 redundancies.

The coronavirus lockdown wiped out Carluccio’s restaurant revenue at a time when the chain was already struggling, falling into administration earlier this year.

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Phil Reynolds, joint administrator and partner at FRP, said in a statement shared with PA: “The COVID-19 lockdown has put incredible pressure on businesses across the leisure sector, so it has been important to work as quickly and as decisively as possible in an extremely challenging business environment to secure a sale.

“It ensures the future of the Carluccio’s brand in the UK casual dining scene, retains a significant network of sites across the country and, critically, transfers a considerable number of jobs.”

“Whilst it is an extremely challenging time for the sector, we believe quality hospitality businesses will recover in the long term as people return to eating out,” said Satnam Leihal, managing director of Boparan Restaurant Group.

FRP Advisory, Carluccio’s and Boparan Restaurant Group have been approached for comment.

Administrators for Carluccio’s said the following 30 restaurants have been saved:

Beverley
Bluewater
Bristol, Cribbs Causeway
Cambridge
Cheshire Oaks
Chester
Chichester
Colchester
Derby
Kingston, Bentalls
Leamington Spa
Leeds, Trinity
London, Islington Development Kitchen
London, Marriott Heathrow
London, Marriott Regents Park
London, Richmond
London, South Kensington
London, St Christopher’s Place
London, St Pancras Station
London, Waterloo Station
London, Wimbledon
Manchester, Trafford Centre
Manchester, Piccadilly
Portsmouth
Reading
Sheffield
Solihull
Southampton
Stratford on Avon
Walton on Thames