RESTAURANT chains Giraffe and Ed’s Easy Diner will close nearly a third of their sites, putting hundreds of jobs at risk.
The owner of both brands has announced plans to shut down 27 out of 87 combined restaurants.
Alamy Giraffe and Ed’s Easy Diner will close restaurants
It has not yet been revealed how many of each chain will close.
The chains are both owned by Boparan Restaurant Group (BRG), which also owns fish and chip shop chain Harry Ramsden, airport restaurant Wondertree, upmarket London fish restaurants Fishworks and US fried chicken shop Slim Chickens.
No closures for the other restaurants owned by the group have been announced.
BRG said it is closing “unprofitable” branches, even though sales have improved since it bought Giraffe and Ed’s in 2016.
Alamy Branches of Ed’s Easy Diner will close but it hasn’t been revealed exactly how many yet
But losses for Giraffe and Ed’s came to £1.6million last year, so BRG is entering into a company voluntary agreement (CVA) for the two chains – which allows a company and its creditors to come to a compromise agreement and avoid an administration or liquidation.
BRG blamed the closure on competition from other casual fast dining chains, fewer customers, and increasing costs.
Tom Crowley, chief executive of BRG, said: “We have been examining options for the two brands for some time and the CVA is the only option to protect the company.
“The combination of increasing costs and over-supply of restaurants in the sector and a softening of consumer demand have all contributed to the challenges both these brands face.”
Which shops did we lose from the high street in 2018?A NUMBER of familiar high street names hit the rocks last year, including:
Asda: the supermarket began consulting with staff over potential job losses last year which could total almost 2,500.
Coast: collapsed into administration in October 2018, putting 300 jobs at risk. 24 standalone stores have been closed, while Karen Millen is understood to have bought the group’s brand and website, saving around 600 roles.
Evans Cycles: up to 50 per cent of its locations will also close, leading to around 650 job cuts.
Gaucho: the restaurant group prepared to file for administration in July 2018 facing the loss of 1,500 jobs. The Argentinian restaurant had been in talks with potential buyers since May 2018.
House of Fraser: announced in early August that 31 of its 59 stores would be closing by January 2019. This meant 2,000 jobs were at risk – along with over 4,000 of its brands and concessions. It’s now been confirmed that Sports Direct owner Mike Ashley has bought the company.
Ikea: The Swedish furniture store unveiled plans to cut 350 UK jobs over the next two years as part of a global transformation plan. But it will also add 500 new jobs in spring when the new Greenwich store opens.
Laura Ashley: the retail chain is expected to close around 40 stores under its new chairman.
New Look: is looking at plans to close 60 stores in the UK, with its owners considering a possible Company Voluntary Arrangement (CVA), which will allow it to restructure its business and pay-off its debts.
Pets At Home: the pet chain is likely to cut some jobs next year, having earmarked 30 vet practices at its stores for closure.
Prezzo: also announced plans to close 100 restaurants putting hundreds of jobs at risk.
Toys R Us: went into administration earlier this year. The company, for many years a household name in retailing, faced the loss of 3,000 jobs.
Advisers from KPMG will oversee the process.
BRG acquired Giraffe from Tesco in 2016, and later combined it with Ed’s Easy Diner, which it had bought in a pre-pack administration that same year.
The two brands form a combined entity, and in the most recent results, had an annual turnover of £67.1 million.
In the same period, losses came to £1.6 million.
Last year, several casual dining brands overhauled their businesses, with some closing sites, amid rising costs and tougher competition in the sector.
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Prezzo, Jamie’s Italian, Byron, Carluccio’s, Gaucho and Gourmet Burger Kitchen all shut restaurants.
Last week, Gap announced it will close 200 stores around the world.
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