Franco Manca has secured approval for its proposed restructuring plan, confirming the locations that are set to close as a result.
In April, Franco Manca unveiled plans to shut 16 of its around 70 UK restaurants, in a move expected to put around 225 jobs at risk.
Franco Manca owner Fulham Shore said the decision came as a result of rising costs, including “disproportionately high” UK taxes and insufficient business rates relief.
The Company Voluntary Agreement (CVA) restructuring plan has today (5 May) been approved by creditors. The proposal received support from over 90% of voting creditors by value.
The restaurant chain said the CVA would allow it to invest in its retained estate to ensure “exceptional experiences” continue to be provided to customers.
It will also allow Franco Manca to explore opportunities to grow the brand and strengthen its position in the market.
As part of the CVA, 16 locations will close, including Battersea, Bishop’s Stortford, Brixton, Broadway Market, Bromley, Cheltenham, Chiswick, Didsbury, Glasgow, Hove, Kilburn, Lincoln, New Oxford Street, Plymouth, Stoke Newington and Tottenham Court Road.
“We are grateful for the support shown by our creditors today,” said Fulham Shore CEO Marcel Khan. “Franco Manca is a fantastic brand with a strong heritage and loyal customer base.
“With this agreement in place, we will put the business back on a firm footing and press ahead with strengthening our customer offer and performance.”
Paul Berkovi, MD at administrators Alvarez & Marsal, added: “Today’s vote saw a significant majority of the company’s creditors support the CVA, reflecting constructive engagement across stakeholders.
“Against a challenging backdrop for the sector, this is an important step for Franco Manca, enabling the business to complete its financial restructuring and secure the platform for its operational transformation.”
It comes as The Real Greek, which was previously owned by Fulham Shore, has “secured a future”, with 19 of 28 restaurants saved in a rescue deal.
Karali Group, the owner of the Côte restaurant brand, reached an agreement to save the Greek and eastern Mediterranean food chain on Friday (1 May), in a move that will result in the loss of 151 jobs.
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