Eatery dishes up yet another blow for centre
ANDREA LAMBROU
The death knell sounded for yet another restaurant at The Hub, EK with Chiquito announcing its closure due to the coronavirus crisis.
The owner of the Tex-Mex dining chain said the pandemic had prompted it to call in the administrators.
The majority of Chiquito restaurants across the UK are to close permanently.
The Restaurant Group, which also owns Wagamama and Frankie & Benny’s, said 61 out of 80 branches would not reopen. The decision will lead to the loss of almost 1500 jobs.
Confirming the closure this week, a spokesman for EK, East Kilbride, said: “The coronavirus has had a severe impact on the hospitality sector across the UK, with the recent announcement by The Restaurant Group illustrating this only too clearly.
“Unfortunately, as a result of these very challenging conditions, Chiquito in The Hub will not be reopening when restrictions are relaxed.
“Despite the difficult trading conditions we have had positive discussions with a number of other operators and look forward to making an announcement very soon.”
Restaurants have remained shut since the UK went into lockdown on March 23 and many are unlikely to reopen in July due to the financial stress caused by the coronavirus pandemic.
The Restaurant Group said it had initially kept Chiquito workers in employment under the government’s furlough scheme after all restaurants were ordered to close to help prevent the spread of the virus.
The Chiquito chain had already been struggling with falling sales and profits.
The Restaurant Group said that “COVID-19 has had an immediate and significant impact on trading across the group”.
And there could be another casualty at The Hub after 3000 job cuts and 125 closures were announced at Frankie & Benny’s restaurants.
The firm will enter into a insolvency procedure known as a company voluntary arrangement that will allow it to restructure its business by closing some unprofitable restaurants.
It is not yet known if the East Kilbride town centre branch will be affected.
Andy Hornby, chief executive of The Restaurant Group (TRG) said: “The issues facing our sector are well documented and we have already taken decisive action to improve our liquidity, reduce our cost base and downsize our operations.
“I would like to wholeheartedly thank all of my TRG colleagues for their continued understanding and extraordinary commitment during this unprecedented period.”
Chiquito is the latest eatery to be axed in the town after Bella Italia came under threat last month with 6000 job cuts announced across Scotland.
The closure of a fourth restaurant at The Hub would be a major blow to the shopping centre following the collapse of the Filling Station last year and The Handmade Burger Co. which shut its doors just nine months after opening as part of the new leisure hub.