The Restaurant Group launches CVA, plans to close 125 Frankie and Benny's outlets
It continues to seek “improved rental terms” on a portion of the remaining trading estate.
The Restaurant Group has opted for a company voluntary agreement (CVA) to restructure its Leisure business.
In an announcement, the group intends to reduce its current portfolio by closing up to 125 Frankie and Benny’s outlets as well as seeking “improved rental terms on a portion of the remaining trading estate.”
Some 3,000 jobs could be at risk as a result of the move.
If the CVA is approved, it will leave the group with 160 sites remaining in its Leisure estate, which also includes Coast to Coast and Garfunkel's. The agreement includes a mechanism to exit approximately 25 previously closed Leisure sites.
The arrangements, the group added, will have no impact on their Wagamama, Airport Concessions and Pub operations.
"The issues facing our sector are well documented and we have already taken decisive action to improve our liquidity, reduce our cost base and downsize our operations. The proposed CVA will deliver an appropriately-sized estate for our Leisure business to ensure we are well positioned despite the very challenging market conditions facing the casual dining sector,” TRG chief executive Andy Hornby said.
