More jobs misery as Cafe Rouge and Bella Italia cut 1,900 staff
THE future of restaurant chains Cafe Rouge and Bella Italia was in doubt last night as their owners went into administration and axed 1,900 jobs.
Casual Dining Group announced the closure of 91 of its 250 restaurants all around Britain because of the ‘extreme operating environment’. They include 35 Bella Italia, three Belgo, 32 Cafe Rouge, and 11 Las Iguanas restaurants, as well as airport cafes and bars.
The future of the remainder and another 4,000 jobs now rests on finding a buyer. Joint administrator Clare Kennedy, of Alix Partners, said: ‘Our immediate priorities are to assist those whose employment has been affected by today’s announcement and to secure a sale for the group to protect jobs.’
The grim news follows more than 12,000 job losses earlier this week. Snack chain Upper Crust is axing 5,000 staff, while Topshop, TM Lewin and Harrods made close to 1,900 redundancies.
Casual Dining Group is one of Britain’s biggest mid-market dining chains but it was struggling before the pandemic. In May last year it reported a £242million loss due to weak demand and soaring costs. It was put up for sale, but failed to complete a deal before lockdown forced all its outlets to close in March.
The administration will allow it to exit expensive leases, making it more attractive to buyers. Chief executive James Spragg said: ‘We are acutely aware of our duty to all employees.
‘We will do everything we can to support them... with a view to preserving as much employment as we are able to.’
Earlier this week Byron Burger, which has 50 restaurants and 1,200 staff, was preparing to go into administration.
Last month Frankie & Benny’s said up to 120 of its restaurants will never reopen, costing 3,000 jobs. And more than half of Carluccio’s 71 sites closed in May, with the loss of 1,000 jobs.