125 restaurant sites to close
The Restaurant Group plc has announced a proposal to reduce the size of its Leisure estate and rental cost base by the implementation of a company voluntary arrangement (CVA) principally comprising of its Franky and Benny’s estate.
The CVA will provide a mechanism to restructure the Leisure estate in line with the plan outlined in the Group’s last market update on the 8 April 2020 by reducing the current portfolio by exiting approximately 125 trading sites as well as seeking improved rental terms on a portion of the remaining trading estate.
Assuming the CVA is approved and successfully implemented, this will leave a remaining trading estate in the Group’s Leisure business of approximately 160 sites.
Commenting on the announcement, Andy Hornby, TRG chief executive said: “The issues facing our sector are well documented and we have already taken decisive action to improve our liquidity, reduce our cost base and downsize our operations. The proposed CVA will deliver an appropriately-sized estate for our Leisure business to ensure we are well positioned despite the very challenging market conditions facing the casual dining sector. I would like to wholeheartedly thank all of my TRG colleagues for their continued understanding and extraordinary commitment during this unprecedented period.”