Franco Manca to close 16 restaurants amid restructuring
Restaurant chain Franco Manca will proceed with the closure of 16 venues following the approval of a restructuring plan by its creditors, reports BritPanorama.
The decision impacts approximately 225 jobs and follows the parent company, The Fulham Shore, citing “disproportionately high” UK taxes and the absence of business rates relief as significant factors affecting its viability. The affected restaurants were deemed “no longer sustainable.”
Franco Manca’s company voluntary arrangement (CVA) received overwhelming support, with over 90 percent of voting creditors backing the proposal, allowing the firm to implement its restructuring strategy.
In parallel, Fulham Shore has placed its sister brand, The Real Greek, into administration, resulting in the immediate closure of nine out of its 28 locations after being acquired by Karali Group.
Marcel Khan, CEO of Fulham Shore, expressed gratitude for creditor support, reinforcing commitment to the Franco Manca brand and its customer base. He stated, “With this agreement in place, we will put the business back on a firm footing and press ahead with strengthening our customer offer and performance.”
Paul Berkovi, Managing Director of Alvarez & Marsal, remarked on the CVA’s success as an essential step for the future of Franco Manca, allowing it to navigate the challenging landscape of the food service industry and secure a platform for operational transformation.
Full list of Franco Manca branches to close
Battersea
Bishops Stortford
Brixton
Broadway Market
Bromley
Cheltenham
Chiswick
Didsbury
Glasgow
Hove
Kilburn
Lincoln
New Oxford Street
Plymouth
Stoke Newington
Tottenham Court Road
The ongoing challenges for the restaurant sector necessitate significant adjustments from brands like Franco Manca. As it navigates these closures, the emphasis will likely shift towards enhancing operational efficiency and customer engagement amidst a complex market landscape. Such restructuring decisions, while difficult, reflect the broader trends affecting the UK hospitality industry, underscoring the need for strategic adaptability in the face of economic pressures.
