Gourmet Burger Kitchen owner to halt financial support to chain

Famous Brands bought the burger chain in 2016.

The parent company of Gourmet Burger Kitchen (GBK) is no longer willing to provide any further financial support to the chain, it said in an announcement.

South Africa-based Famous Brands, which bought the chain back in 2016 in a deal worth £120 million, said it would cut funding to GBK, which temporarily closed all its stores due to the COVID-19 pandemic.

“Accordingly, the board of GBK will consider the options available to the business,” it stated. “The board’s decision to withhold further financial support for GBK may result in an impairment of the full value of Famous Brands’ investment in GBK. The precise valuation of such an impairment would be determined in due course. A further announcement will be issued as soon as reasonable certainty in this regard has been obtained.”