Struggling Burger Chain In “Restructuring” Move

GBKThe Gourmet Burger Company has appointed restructuring expert Deloitte following industry rumours a Company Voluntary Arrangement (CVA) may be imminent.

A report in The Times states that Deloitte will attempt to negotiate site closures and rent cuts for the struggling chain, owned by parent company Famous Brands.

The reports come after Famous Brands released a cautionary announcement last month, which did not refer directly to the brand but read: “Famous Brands is giving consideration to strategic options relating to a subsidiary that may have a material impact on the price of the company’s share price.

“Shareholders are requested to exercise caution when dealing in the company’s shares.”

Deloitte has declined to comment on the speculation.

A voluntary performance update issued by the parent company showed the Gourmet Burger Kitchen had recorded an operating loss of £2.24m in the 22 weeks ending 29 July 2018.

Like-for-like sales for the burger chain were down 10.6%.

A number of casual dining brands have already pursued a CVA this year including Jamie’s Italian, Prezzo (including Tex-Mex chain Chimichanga, Carluccio’s and Byron.