Four Scottish stores to close as Bella Italia owner goes into administration
owner of Bella Italia, Cafe Rouge and Las Iguanas has said it plans to cut more than 1,900 jobs after calling in administrators.
The company said it would close 91 of its 250 restaurants, with 1,909 positions to be axed. But the firm has saved other outlets for now.
The decision still leaves around 4,050 workers at the company’s sites across the UK. Three Bella Italia stores will shut in Scotland, with sites to close in Dunfermline, Aberdeen and East Kilbride. Edinburgh’s Cafe Rouge restaurant will also shut.
The board said entering administration was in the best interest of stakeholders during the “extreme operating environment” it is having to trade through.
It is looking for a new owner, but said the administration would allow it to end negotiations with landlords – a “critical step” before finding a buyer.
Chief executive James Spragg said: “After reviewing all our options with advisers, it became clear that we needed to take this action in order to protect the business and secure the best possible future for Casual Dining Group as we look to conclude a potential sale.
“We are acutely aware of our duty to all employees and recognise that this is an incredibly difficult time for them. Working alongside the administrators we will do everything we can to support them through this process with a view to preserving as much employment as we are able to.”
Bosses said all the offers they had received from potential buyers involved reducing the number of restaurants it runs. The administrators therefore decided to close the sites perthe manently. The list of closures include 35 Bella Italia, three Belgo, 32 Cafe Rouge, and 11 Las Iguanas restaurants.
Several cafes and bars at airports, six of which are at Heathrow, are among the closures.
Administrator Clare Kennedy, from Alix Partners, said: “Our immediate priorities are to assist those whose employmenthasbeenaffected by this announcement and to secure a sale for the group in order to protect jobs.”