Franco Manca, a popular pizza chain, has announced plans to shut down 16 out of its 70 restaurants, resulting in approximately 225 job losses. The parent company, The Fulham Shore, has successfully obtained creditor approval for the restructuring of its business.
The decision to close the affected restaurants was driven by the challenges posed by high UK taxes and the absence of relief on business rates for the restaurant industry. This move was deemed necessary as these restaurants were no longer financially viable.
The company’s proposal for a company voluntary arrangement (CVA) received overwhelming support from over 90% of the voting creditors, allowing the restructuring process to move forward. Additionally, Fulham Shore recently placed its sister brand, The Real Greek, into administration, which was subsequently acquired by the Karali Group. However, nine out of its 28 restaurants will be closed.
Marcel Khan, the CEO of Fulham Shore, expressed gratitude for the creditors’ support, emphasizing Franco Manca’s strong brand and loyal customer base. He highlighted the importance of the agreement in stabilizing the business and enhancing its offerings and performance.
Paul Berkovi, the managing director of Alvarez & Marsal, also commended the creditors for backing the CVA, stating that it represents a crucial step for Franco Manca amidst a challenging industry landscape. This decision is seen as pivotal in completing the financial restructuring and setting the stage for operational improvements.
The list of restaurants set for closure includes the following locations.