Restau­rant chain to shut down 91 sites

The Daily Telegraph - Business - - Front Page - By Hannah Ut­t­ley and Chris John­ston

THE owner of Cafe Rouge and Bella Italia has col­lapsed into ad­min­is­tra­tion, lead­ing to the clo­sure of 91 restau­rants with more than 1,900 re­dun­dan­cies.

Ca­sual Din­ing Group is the lat­est firm to fall vic­tim to the coro­n­avirus cri­sis in a week when 12,000 jobs have been axed, with the high street and avi­a­tion in­dus­try bear­ing the brunt.

The firm – owned by pri­vate eq­uity gi­ant KKR – has ap­pointed ad­min­is­tra­tors at Alix Part­ners as it races to find a buyer, and is likely to be sold off in parts. Its es­tate will be re­duced from 250 to 159 out­lets. The group said that given the “ex­treme op­er­at­ing en­vi­ron­ment” it was in the best in­ter­ests of all stake­hold­ers to en­ter ad­min­is­tra­tion so the com­pany can con­clude ne­go­ti­a­tions with land­lords. The pro­ce­dure pro­tects firms which have run out of cash while they try to find a so­lu­tion.

Most of the clo­sures af­fect the Cafe Rouge and Bella Italia chains, although 11 Las Igua­nas out­lets, three Belgo restau­rants and sev­eral sites at air­ports will also shut. Turn­around fund Aure­lius Eq­uity Op­por­tu­ni­ties has made an of­fer to take over Cafe Rouge and Bella Italia, Sky News re­ported. Ri­val turn­around firm End­less is said to be com­pet­ing with pri­vate eq­uity in­vestor Trispan to take con­trol of Las Igua­nas.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.