Carluccio's has announced its proposal to enter a company voluntary arrangement (CVA) has been backed by creditors, with the closure of 30 restaurants.
The Italian restaurant chain said the proposal was required to restructure the company by ditching a number of loss-making restaurants from its 103 UK sites. Carluccio's said today the process will impact up to 30 restaurants.
More specific details on closures will be made by the company "when practicable".
The Italian chain is following the likes of Prezzo, Jamie's Italian and Byron in entering a CVA, with tough times facing established restaurant chains from rising costs and competition.
These developments follow a strategic review of the business, led by new chief executive Mark Jones, who joined the business in January 2018 from Goals Soccer Centres.
Carluccio's said the backing from the majority of its creditors now paves the way for a hefty investment programme, fuelled by investment into the business that will lead to a major programme of restaurant refurbishments.
We are pleased that our proposal for a CVA has been approved by our creditors. This vote was vital to protect our strong core business and the Carluccio’s brand.
I would like thank our landlords for their support. We now look forward to a positive future and the on-going development of the Carluccio’s business and of course our passionate people.
The positive outcome enables us to kick-start an extensive programme of reinvigoration across our estate – with the aim of elevating the guest experience and underpinned by our brand ethos of minimum of fuss, maximum of flavour, which was so passionately championed by our founder Antonio Carluccio.
Earlier this month, it was revealed that chief operation officer at Carluccio's had stepped down less than a year after he joined the group.