Carluccio’s on verge of administration after closing restaurants due to coronavirus
RESTAURANT chain Carluccio’s is on the edge of collapse after being forced to close branches due to the coronavirus crisis.
The Italian food chain is reported to have administrators FRP Advisory on hand, according to Sky News.
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Going into administration would see the firm look for a buyer, but this is unlikely to be successful while the chain isn’t bring in any revenue.
The chain’s collapse would see more than 2,000 jobs put at risk.
Carluccio’s was founded in 1999 by late chef Antonio Carluccio and has been on British high streets for 20 years.
Experts believe that the brand is unlikely to disappear altogether.
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It comes days after restaurants and fast food chains were ordered to temporarily shut up shop to help stop the spread of the coronavirus.
As a result, Carluccio’s refused to pay its quarterly rent bill while it wasn’t operating, joining a number of other retailers struggling to stay afloat during the COVID-19 crisis.
Today, it was also reported that rent-to-own firm BrightHouse is also on the brink of collapse, while Laura Ashley went bust last week.
Yesterday, Mexican food chain Chiquito’s filed for administration putting more than 1,000 jobs at risk.
Following the closures, Carluccio’s told staff that they would only be receiving half of their usual pay for March.
In a note to employees, boss Mark Jones said: “I realise this is going to be a terrible shock to all of you.
“The rapid decline in sales and then the closure of our restaurants exhausted the company’s cash resources, and we have been struggling to make the payroll payment this month.”
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He said he’d volunteered to not be paid at all for this month.
It’s not the first time that Carluccio’s has been in trouble – in 2018 it took a Company Voluntary Arrangement (CVA) to consolidate its debts, which saw 30 branches closed.
A spokesperson for FRP said: “FRP is working with the Directors of Carluccio’s to consider all options for the company in the current climate.”
Carluccio’s is owned by Dubai-based company Landmark Group. The Sun has contacted them for comment.