Giraffe restaurants at risk of closure as CVA planned
The owners of high street restaurant chain Giraffe and Ed’s Easy Diner, Boparan Restaurant Group (BRG), is to close a third of its restaurants around the country as part of a company voluntary agreement
4 Mar 2019
Restructuring advisers at KPMG are advising on the CVA and the group plans to close 27 of the combined chains’ 87 restaurants in the UK putting over 300 jobs at risk. The franchisee restaurants in the group are not affected.
The group called in KPMG in February to advise on potential restructuring of the restaurant chain following pressure on sales due to the slowdown in consumer casual dining.
Boparan Restaurant Group vehicle Giraffe Concepts Limited bought Ed’s Easy Diner, a retro American diner chain with over 50 across the UK.
The group has eight different brands, operating in almost 100 sites alongside a strong franchise business with 40 sites in the UK and abroad.
No other brands in the group are affected by the restructuring under CVA.
Unaffected brands include Harry Ramsden’s fish and chip chain, Slim Chickens and the Fishworks, as well as the upscale Cinnamon Collection chain of contemporary Indian restaurants in London. which are not affected by the restructuring are not affected.
This follows months of restaurant closures, particularly hitting the high street chains, with upmarket chain Byron Hamburgers Ltd entering a CVA in January handled by KPMG as part of a financial restructuring that is likely to see it close up to 20 branches in a bid to cut rental costs. Gourmet Burger Kitchen also took the CVA route.
Upmarket restaurant chain Gaucho also looked at CVA options last September but was bought out of administration by the company’s lenders and banking groups, Investec Bank and SC Lowy, saving 750 employees and 16 UK sites, last September. Back in early 2018, Prezzo announced closures of up to a third of its 300 plus nationwide restaurants and worked with AlixPartners on possible CVA options.
Report by Sara White