Carluccio’s will undertake a restructuring programme that may see up to 30 of its restaurants close, as creditors approved the Company Voluntary Agreement (CVA), which allows the business to reduce rents while negotiating with landlords.
The group will undertake a £10 million investment programme in the remaining sites, undertaken by majority shareholder Landmark Group.
CEO Mark Jones said: “We are pleased that our proposal for a CVA has been approved by our creditors. This vote was vital to protect our strong core business and the Carluccio’s brand.
“I would like thank our landlords for their support. We now look forward to a positive future and the on-going development of the Carluccio’s business and of course our passionate people.
“The positive outcome enables us to kick-start an extensive programme of reinvigoration across our estate – with the aim of elevating the guest experience and underpinned by our brand ethos of minimum of fuss, maximum of flavour, which was so passionately championed by our founder Antonio Carluccio.”
Will Wright, restructuring partner at KPMG and joint supervisor of the CVA, said: “This is an important step forward for the business, allowing Carluccio’s to complete its financial restructuring plan and embark on a comprehensive operational transformation programme.
“Today’s (Thursday) vote saw 91% of all voting creditors choosing to approve the CVA, surpassing the 75% total required in order to pass the resolution.”
Carluccio’s is the latest casual dining chain to fall victim of tough trading conditions which has seen Prezzo, Jamie’s Italian and Byron in entering a CVA, as a result of increased competition and rising costs .