Hundreds of jobs are at risk after the owner of the Giraffe and Ed’s Easy Diner chains announced plans to close a third of their restaurants under a rescue deal.
The Boparan Restaurant Group (BRG), owned by “chicken king” Ranjit Singh Boparan, said 27 of the brands’ 87 restaurants would go under the proposed agreement with landlords. Rent reductions were being sought on a further 13 sites.
It is understood the cutbacks affect more than 300 workers.
BRG explained that despite some sales improvements since they were bought by the group in 2016, some unprofitable stores remained and it was now forced to seek a Company Voluntary Arrangement (CVA).
Tom Crowley, chief executive of BRG, said: “We have been examining options for the two brands for some time and the CVA is the only option to protect the company.
“The combination of increasing costs and over-supply of restaurants in the sector and a softening of consumer demand have all contributed to the challenges both these brands face.”
Prezzo, Jamie’s Italian, Byron, Carluccio’s, Gaucho and Gourmet Burger Kitchen all shut restaurants in 2018 to ease the strain on their finances.
BRG said KPMG would be overseeing the CVA process.
Its other brands, including the Harry Ramsden fish and chip shop chain and the upmarket Cinnamon Collection, are unaffected by the process.
