Carluccio's announces creditors' support for CVA proposal

The Italian brand is now set to close ‘lossmaking’ sites in a effort to restructure the group.

Carluccio’s announced that their proposal to enter a CVA (Company Voluntary Arrangement) has been supported by a majority of its creditors.

“We are pleased that our proposal for a CVA has been approved by our creditors. This vote was vital to protect our strong core business and the Carluccio’s brand. The positive outcome enables us to kick-start an extensive programme of reinvigoration across our estate,” Carluccio’s CEO Mark Jones said in a statement.

The CVA was proposed by the brand in a bid to restructure the group by facilitating the exit of a minority number of ‘lossmaking’ restaurants from its 103 UK sites. The process, Carluccio’s says, will impact up to 30 restaurants.

Recently, the use of CVAs by retailers and chains has been subject to opposition by some landlords. (Also read: Landlords to fight back against use of CVAs by retailers, chains)

With creditors approving of the CVA, Carluccio’s says this now paves the way for a “far-reaching” investment programme, with new funding expected to be infused into the business. They also said they will make further announcements on closures “when practicable.”