Gourmet Burger Kitchen system-wide sales dip by 7%
Its owner is optimistic that remedial actions are gaining momentum.
Gourmet Burger Kitchen’s (GBK) system-wide sales in the UK declined by 7% for the 52-week period ended 24 February 2019, whilst like-for-like sales decreased by 4.2% compared to the previous year.
Despite the decline, its owner Famous Brands said they are “optimistic” that remedial actions underway are “starting to gain momentum”, which they explain through the trading results reported for the second 26 weeks (“H2”) of the review period compared to the first 26 weeks (“H1”).
H1 like-for-like sales fell by 9.7% whilst H2 sales gained by 1.6%.
In the 16 weeks to 24 February 2019, GBK reported an increase of 4% in like-for-like sales.
Famous Brands notified shareholders last December that GBK’s board of directors had formally completed a Company Voluntary Arrangement, aimed at improving the long-term financial viability and sustainability of the business.
The company said the once-off CVA cost is expected to be in the order of £18.3 million, in line with their projections. This includes non-cash store write down costs totalling £14.4 million, as well as professional fees, redundancy payments, compensation fund costs and store strip-out charges, amounting to £3.9 million.
24 GBK stores were closed during the period in the UK, including closures prior to the announcement of the CVA, as well as those which were part of the CVA close-out process.
Photo credit: Gourmet Burger Kitchen Facebook
