Summary
A popular pizza chain has announced it will be closing one of its restaurants in Cheltenham. Franco Manca will push ahead with the closure of 16 venues after a restructuring plan was approved by creditors. Last month, parent firm The Fulham Shore said it planned to shut the sites as part of a company voluntary arrangement (CVA) process, which will also hit around 225 jobs.
Details
The pizza brand currently runs 70 restaurants prior to the closures but said it has been knocked by “disproportionately high” UK taxes and a lack of business rates relief for restaurants. The effected restaurants were “no longer sustainable” as a result. Franco Manca’s CVA proposal received back from more than 90% of voting creditors, allowing it to get the go ahead.
Last week, Fulham Shore placed its sister restaurant brand The Real Greek into administration. It was immediately snapped up by Cote owner Karali Group but announced the close of nine of its 28 restaurants. Marcel Khan, chief executive of Fulham Shore, said: “We are grateful for the support shown by our creditors today.Franco Manca is a fantastic brand with a strong heritage and loyal customer base.
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“With this agreement in place, we will put the business back on a firm footing and press ahead with strengthening our customer offer and performance.” Paul Berkovi, managing director of Alvarez & Marsal, said: “Today’s vote saw a significant majority of the company’s creditors support the CVA, reflecting constructive engagement across stakeholders.
“Against a challenging backdrop for the sector, this is an important step for Franco Manca, enabling the business to complete its financial restructuring and secure the platform for its operational transformation.” The following sites will close: Battersea Bishops Stortford Brixton Broadway Market Bromley Cheltenham Chiswick Didsbury Glasgow Hove Kilburn Lincoln New Oxford Street Plymouth Stoke Newington Tottenham Court Road