Italian restaurant chain Carluccio's announces intention to enter landlord-only CVA
The brand intends to restructure by facilitating the exit of lossmaking sites.
After reviewing their business strategy, Carluccio’s announced its proposal to enter a Company Voluntary Arrangement (CVA) in order to “to weather the headwinds affecting the industry and to return it to a stable footing.”
The Italian restaurant chain’s proposal is a ‘landlord-only’ CVA, impacting 34 of the group’s lossmaking restaurants. Other landlords and creditors are not expected to be affected.
“Carluccio’s remains a very strong brand known for high-quality food. Independent research shows it is extremely well regarded by the British public in the premium Italian dining space. However, the business is not immune from well-documented pressures sweeping through the casual dining sector and indeed much of the wider UK high street, including retail,” Carluccio’s CEO Mark Jones said.
Jones believes this course of action will “safeguard the future” of the brand. “Regrettably, this is the only course of action… It is therefore in the best interests of the company, its people, its creditors and its customers.”
Creditors are expected to vote on the CVA proposal at the end of May. For the proposal to be passed, the group needs approval from at least 75% of creditors.
If successful, its parent company the Landmark Group will put £10 million of new funding into the business to fund its investment and growth plan.
