Carluccio's expected to announce CVA
The Times reports that the group, which appointed accountants KPMG to assess its options in March, is seeking to close or secure a rent reduction on around a third of its c.100 UK restaurants.
Despite a spokesperson previously denying a restructure was on the cards, it is anticipated that the terms of the proposed CVA will be announced shortly.
The chain, founded by chef Antonio Carluccio in the 1990’s, saw pre-tax profits fall to £982,000 in the twelve months to 25 September 2017, down from £5.2m the year before.
In March it was reported that the group had approached turnaround specialists and private equity groups, including Wagamama owner Duke Street, over a possible sale.
New concepts
The decision follows two years of change at the Italian group.
Carluccio’s sought to revamp the brand with the launch of its "new generation" of restaurants in 2016, offering its first pizza menu and a more defined grab and go area.
It also launched standalone grab and co concept Via Carluccio’s on London’s Tottenham Court Road the same year, but it has since closed.
Last month the group opened its third London Marriott hotel restaurant since 2016 after Carluccio’s CEO Mark Jones said the concept was “particularly suited” to hotels.
Carluccio’s is the latest casual dining operator to be hit by rising rents, rates and labour costs.
High street brands Prezzo, Jamie’s Italian and Byron have all used CVA's to shut restaurants this year amidst tough trading conditions.
BigHospitality has contacted Carluccio’s for further comment.
