Frankie & Benny’s set to lose 125 sites

PORTFOLIO: Move aims to secure future prospects for firm’s leisure arm

Owners of a restaurant chain with four locations across Tayside and Fife will shut 125 of its eateries after creditors voted in favour of a restructuring deal.

Lenders approved The Restaurant Group’s (TRG) Company Voluntary Arrangement (CVA) deal which will slash its leisure restaurant portfolio, which primarily consists of Frankie & Benny’s sites.

Frankie & Benny’s has premises within Dundee’s Overgate shopping centre, St Catherine’s leisure park in Perth, Fife Central retail park in Kirkcaldy and Dunfermline’s Whimbrel Place.

The restructure, which was first announced earlier this month, will also affect its smaller Garfunkel’s and Coast to Coast chains.

The permanent closures will impact up to 3,000 workers across these sites.

TRG said that 82% of all creditors voted in favour of the deal, passing the 75% threshold to pass.

The move will heavily reduce the size of its leisure business to 160 sites, with rent reductions and revised lease terms on 85 of these sites.

Andy Hornby, chief executive of the group, said: “These are exceptionally challenging times for our sector and TRG is extremely grateful for the support shown by our creditors in today’s vote.

“The approval of the CVA is a critical component in ensuring the future prospects for our leisure business.

“I would like to wholeheartedly thank our colleagues who have shown extraordinary commitment throughout the process.”

The Restaurant Group also owns pan-Asian chain Wagamama, and runs several pubs and concessions in airports.