Italian restaurant chain Carluccio’s has confirmed it has fallen into administration amid the ongoing coronavirus pandemic.
The business, which has 71 outlets and was founded by Antonio Carluccio in 1991, confirmed yesterday (Monday 30th) that it has hired advisory firm FRP to oversee its administration.
FRP said it was “urgently” assessing all options for the future of Carluccio’s, including mothballing restaurants using government support, as well as selling on some or all of the business.
Up to 2,000 jobs are now at risk as administrators seek a solution, however, Most of the company’s employees will be paid through the government’s job retention scheme while these options are explored. This allows for staff to be paid up to 80% of their salary.
Geoff Rowley, joint administrator and partner at FRP, said: “We are operating in unprecedented times and the issues currently facing the hospitality sector following the onset of Covid-19 are well documented.
“In the absence of being able to continue to trade Carluccio’s, in the short term, we are urgently focused on the options available to preserve the future of the business and protect its employees.”
Mr Rowley said FRP looked forward to working with HMRC to access the support it provided for companies in administration and their employees.
He added: “As this fast-moving situation progresses, we will remain in regular communication with all employees and key stakeholders, and will provide a further update in due course.”
The chain has been struggling amid fierce competition, increasing costs and falling revenues before the outbreak. In 2018, Carluccio’s used a company voluntary arrangement to renegotiate debts and exit 28 non-performing sites.
