Frankie & Benny's Owner Restaurant Group Says Closure Plans Backed

(Alliance News) - Restaurant Group PLC which runs Frankie & Benny's, will shut 125 of its ...

Alliance News 29 June, 2020 | 3:42PM
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(Alliance News) - Restaurant Group PLC which runs Frankie & Benny's, will shut 125 of its restaurants after its creditors voted in favour of a restructuring deal.

Lenders approved the group's company voluntary arrangement deal which will slash its leisure restaurant portfolio, which primarily consists of Frankie & Benny's sites.

The restructure, which was first announced earlier this month, will also affect its smaller Garfunkel's and Coast-to-Coast chains.

The permanent closures will impact up to 3,000 workers across these sites.

TRG said that 82% of all creditors voted in favour of the deal, passing the 75% threshold to pass.

The move will heavily reduce the size of its leisure business to 160 sites, with rent reductions and revised lease terms on 85 of these sites.

Andy Hornby, chief executive of the group, said: "These are exceptionally challenging times for our sector and TRG is extremely grateful for the support shown by our creditors in today's vote.

"The approval of the CVA is a critical component in ensuring the future prospects for our Leisure business.

"I would like to wholeheartedly thank our colleagues who have shown extraordinary commitment throughout the process."

The Restaurant Group also owns pan-Asian chain Wagamama, and runs several pubs and concessions in airports. These will not be affected by the news, it said.

In March, before lockdown, the firm closed 60 of its Chiquito Mexican-style outlets, as well as its chain of pubs Food & Fuel.

Restaurant Group shares were 4.5% higher at 60.53 pence each in London on Monday afternoon.

source: PA

Copyright 2020 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Restaurant Group (The) PLC 47.58 GBX 0.89 -

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