Franco Manca, the popular pizza chain, is set to close 16 of its restaurants in a move that will result in approximately 225 job losses. The closures come after creditors approved a company voluntary arrangement (CVA), which received over 90 per cent support from voting creditors.
Restructuring Plan Details
The parent company, The Fulham Shore, has cited "disproportionately high" UK taxes and a lack of business rates relief as key factors behind the decision. According to the company, these economic pressures have made the affected venues "no longer sustainable."
Impact on Workforce
The restructuring will impact around 225 employees across the 16 sites. While the company has not specified which locations will close, it has assured that efforts will be made to redeploy staff where possible.
This development follows the recent administration of Franco Manca's sister brand, The Real Greek, which also closed nine restaurants despite being acquired by Karali Group, the owner of Cote.
CEO Statement
Marcel Khan, chief executive of Fulham Shore, expressed confidence in the restructuring plan, stating: "This agreement will put the business on a firm footing and strengthen our customer offer. We are committed to providing high-quality pizzas and excellent service at our remaining locations."
The CVA process allows the company to exit unprofitable leases and reduce its cost base, positioning it for long-term sustainability in a challenging economic environment.
