The Real Greek has “secured a future”, with 19 of 28 restaurants saved after restaurant group Toridoll, the owner of The Real Greek’s previous parent company, Fulham Shore, entered administration.
Karali Group, the owner of the Côte restaurant brand, reached an agreement to rescue the Greek and eastern Mediterranean food chain on Friday (1 May), in a move that will result in the closure of nine locations.
While the exact locations that will shut has not yet been confirmed, Karali Group said the change would result in 151 job losses. However, the deal has secured the future of 358 jobs.
In April, Fulham Shore, the former parent company of The Real Greek, which also owns Franco Manca, launched a company voluntary arrangement (CVA) restructuring process.
At the time, it was announced that around 16 Franco Manca restaurants were to close, while a review of future plans for The Real Greek continued. Fulham Shore blamed the decision on result of rising costs, including “disproportionately high” UK taxes and insufficient business rates relief.
Speaking on the deal for The Real Greek, Fulham Shore CEO Marcel Khan said: “The transaction will ensure that the business is placed on a more sustainable footing for the future, while allowing The Fulham Shore to focus its energy and investment behind Franco Manca and its significant growth potential.
“We’re pleased to be handing it over to Karali with real momentum. We will now do everything we can to support colleagues affected by this process and believe that both the brand and its teams will be in very good hands as the business moves into its next chapter.”
Paul Berkovi, MD at administrators Alvarez & Marsal, added: “We have worked closely with The Real Greek’s management team and are pleased to have completed a transaction that secures a future for a restaurant group enjoyed by diners over many years.
“Our immediate focus as administrators will be to provide a smooth transition for the business and to support employees affected by site closures. We are grateful to all stakeholders for their constructive engagement throughout this process.”
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