Carluccio’s saves 30 restaurants in rescue deal but over 1,000 jobs will still be cut

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CARLUCCIO’S has been bought in a rescue deal to save 30 restaurants – but 1,000 jobs will be lost.

Giraffe and Ed’s Easy Diner owner Boparan Restaurant Group has snapped up the high street chain in a move which has saved 30 restaurants and around 800 jobs.

Italian Carluccio’s restaurant chain has been saved in a rescue deal

But administrator FRP Advisory says the move has resulted in the redundancy of 1,019 Carluccio’s employees after it was unable to secure the future of the chain’s other 40 restaurants.

The dining chain was founded in 1999 by late chef Antonio Carluccio and has been on British high streets for 20 years.

Today’s announcement comes after it was feared the dining chain would go into administration after being hit by the coronavirus pandemic.

The restaurant chain had hired insolvency advisers to prepare for permanent closures or go out of business.

Phil Reynolds, joint administrator and partner at FRP, said: “The Covid-19 lockdown has put incredible pressure on businesses across the leisure sector, so it has been important to work as quickly and as decisively as possible in an extremely challenging business environment to secure a sale which ensures the future of the Carluccio’s brand in the UK casual dining scene retains a significant network of sites across the country and, critically, transfers a considerable number of jobs.

“We wish the team all the best as part of the Boparan Restaurant Group (BRG).”

Satnam Leihal, managing director of BRG, said: “We welcome Carluccio’s colleagues to BRG.

“This acquisition is in line with our strategy to grow our restaurant group with quality brands.

“Whilst it is an extremely challenging time for the sector, we believe quality hospitality businesses will recover in the long term as people return to eating out.”

The dining chain was hit by the coronavirus crisis after restaurants and fast food chains were ordered to temporarily shut up shop to help stop the spread of the deadly bug.

As a result, Carluccio’s refused to pay its quarterly rent bill while it wasn’t operating, joining a number of other retailers struggling to stay afloat during the COVID-19 crisis.

Following the closures, Carluccio’s told staff that they would only be receiving half of their usual pay for March.

In a note to employees, boss Mark Jones said: “I realise this is going to be a terrible shock to all of you.

“The rapid decline in sales and then the closure of our restaurants exhausted the company’s cash resources, and we have been struggling to make the payroll payment this month.”