Diner chain to close 125 of its restaurants

THE owner of Frankie and Benny’s has confirmed that 125 of its restaurants will not reopen after the current lockdown lifts.

Around 3,000 jobs are at risk after The Restaurant Group (TRG), which also owns Wagamama and Coast to Coast, confirmed the closures yesterday.

The company has around 290 sites around the UK, including branches in Newcastle’s Eldon Square and John Dobson Street, North Tyneside’s Silverlink park and the Gateshead Metrocentre.

It currently has around 22,000 staff on furlough across the country.

Some Frankie & Benny’s closures had already been announced in February, with the company saying it planned to close up to 90 restaurant sites by the end of next year.

The company said lockdown caused “exceptional” issues, but admitted it was “already facing significant challenges prior to the onset of Covid-19”. A full list of the stores slated for closure has not yet been released.

Andy Hornby, chief executive, 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.

“The proposed CVA [company voluntary agreement] will deliver an appropriately sized estate for our leisure business to ensure we are well positioned despite the very challenging market conditions facing the casual dining sector.

“I would like to wholeheartedly thank all of my TRG colleagues for their continued understanding and extraordinary commitment during this unprecedented period.”

The changes are not said to impact Wagamama or the group’s pub and airport concessions.

The Metrocentre has already been hit by te closure Debenhams, which will not reopen after the company failed to agree rent terms.