Franco Manca has confirmed the closure of 16 of its UK restaurants, including one in Greater Manchester, after a restructuring plan was approved by creditors. The affected site in Didsbury, located on Wilmslow Road in south Manchester, will shut as part of the company voluntary arrangement (CVA) process.
The pizza chain's city centre restaurants in Piccadilly Gardens and King Street, as well as at the Trafford Centre, will remain open. The closures are expected to affect around 225 jobs.
Franco Manca, which operated 70 restaurants before the closures, said it had been hit by “disproportionately high” UK taxes and a lack of business rates relief for restaurants. The company stated that the affected restaurants were “no longer sustainable” as a result.
The CVA proposal received backing from more than 90% of voting creditors, allowing it to proceed. Last week, parent company Fulham Shore placed its sister brand The Real Greek into administration, which was immediately acquired by Cote owner Karali Group, but nine of its 28 restaurants were closed.
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. 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.”
