Franco Manca Secures Approval for CVA Restructuring Plan

Pizza group Franco Manca has confirmed that its proposed Company Voluntary Arrangement has been approved by creditors and will close 16 of its restaurants, affecting approximately 225 jobs.

Parent company The Fulham Shore confirmed the closures as part of a company voluntary arrangement (CVA) process, which received backing from over 90 per cent of voting creditors.

Marcel Khan, Chief Executive of Fulham Shore, the owner of Franco Manca, said: “We are grateful for the support shown by our creditors today (May 5). 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.”

The proposal received support from over 90% of voting creditors by value, enabling the business to proceed with its restructuring programme.

The CVA will a spokesperson said,  allow Franco Manca to:

• Invest in the retained estate to ensure exceptional experiences continue to be provided to loyal customers
• Explore opportunities to grow the brand and strengthen its position as the leading Neapolitan Pizza brand in the U.K.

As part of the CVA, the following sites will close:
• Battersea
• Bishops Stortford
• Brixton
• Broadway Market
• Bromley
• Cheltenham
• Chiswick
• Didsbury
• Glasgow
• Hove
• Kilburn
• Lincoln
• New Oxford Street
• Plymouth
• Stoke Newington
• Tottenham Court Road

Paul Berkovi, Managing Director, Alvarez & Marsal, said: “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.”