More of Jamie Oliver's Italian restaurants could be at risk of closure as the company revealed it is exploring restructuring plans.
The firm has struggled to cope with tough UK trading conditions in the casual dining sector over the past year. At the start of 2017, the celebrity chef's restaurant business announced it would close six Jamie's Italian restaurants, and in November, Jamie Oliver Restaurant Group was forced to bail out the Italian chain with a short-term loan while Alix Parters was brought in to devise a turnaround strategy.
“The Jamie Oliver Restaurant Group can confirm it is exploring plans to restructure its Jamie’s Italian restaurant estate in the UK, to ensure the business is in good shape for the future. As part of this review, we are in conversation with our stakeholders, but no final decisions or proposals have been made at this stage," the company said.
“The review does not affect Jamie’s Italian international franchises managed through Jamie’s Italian International. The Jamie Oliver Media Group and the Jamie Oliver Licensing Group, which are both managed and run separately, are also unaffected.”
The Times today reported that the firm could be forced to consider a company voluntary arrangement (CVA), through which retailers can reduce their financial obligations to creditors to stay in business.
Struggling burger chain Byron this week announced it was seeking creditor approval for a CVA, which would involve slicing the number of Byron restaurants but would allow the firm to continue operating.