Gourmet Burger Kitchen's revenue down 7% amidst debt restructuring
The chain says the fall was driven by site closures and Brexit-prompted uncertainty.
Gourmet Burger Kitchen (GBK) posted a 7% revenue decrease year-on-year to £76.1m in the year ending February 2019 following its move to settle debts in November last year.
According to its recent accounts disclosure, the fall in revenue was “driven by site closures, difficult trading conditions in the wake of economic uncertainty prompted by Brexit, continued oversupply in the sector and a significant number of new entrants culminating in a decline in like-for-like in-store performance.”
The 70-store burger chain also earned £28.1m in gross profit compared to £32.7m in the previous period.
GBK's administrative expenses for the period rose 4% to £33.7m compared to 2018's £32.3m due to increased management charges in the period.
As a result, GBK loss before exceptional items, interest and tax for the period was £5.6m compared to a profit of £0.4m in 2018.
The chain underwent a company voluntary agreement in November last year, which led to the closure of 24 stores and loss of around 250 jobs.
