Pizza chain Franco Manca will close 16 of its restaurants, impacting approximately 225 jobs, after creditors approved a restructuring plan. Parent company The Fulham Shore confirmed the closures as part of a company voluntary arrangement (CVA) process, which received backing from over 90 per cent of voting creditors.
Reasons for Closures
The popular pizza brand, which currently operates 70 sites, cited "disproportionately high" UK taxes and a lack of business rates relief for restaurants as key factors, rendering the affected venues "no longer sustainable".
Recent Developments
This decision follows closely on the heels of another significant development for Fulham Shore, which saw its sister restaurant brand, The Real Greek, placed into administration just last week. While The Real Greek was swiftly acquired by Cote owner Karali Group, the deal still resulted in the closure of nine of its 28 restaurants.
CEO Statement
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.”
Advisor Comment
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.”
Company Background
Fulham Shore was bought by Japanese restaurant group Toridoll, with backing from investment firm Capdesia, in 2023 for £93.4 million.
List of Closing Restaurants
The following Franco Manca sites will close: Battersea, Bishops Stortford, Brixton, Broadway Market, Bromley, Cheltenham, Chiswick, Didsbury, Glasgow, Hove, Kilburn, Lincoln, New Oxford Street, Plymouth, Stoke Newington, and Tottenham Court Road.
