Carluccio's creditors to vote on CVA plan

By Sophie Witts contact

- Last updated on GMT

Carluccio's creditors to vote on CVA plan
Creditors at Carluccio’s will today vote on a Company Voluntary Agreement (CVA) that could lead to the closure of a number of loss-making restaurants.

The 103-strong Italian chain is seeking to exit 34 sites and under the terms of the CVA will pay a reduced rent for six months while it negotiates with landlords.

Carluccio’s needs to secure approval of at least 75% of creditors for the plan to move forward.

If approved Carluccio’s owner Landmark, which bought the chain for £90m in 2010,​ will invest £10m in a turnaround strategy and refurbish all remaining restaurants.

It follows a strategic review of the business​ by CEO Mark Jones and CFO Andrew Campbell, who joined the company in January, which warned that “urgent action” was needed to secure the future of the brand.

The chain was founded by Antonio Carluccio in the 1990’s and saw pre-tax profits fall to £982,000 in the year to 25 September 2016, down from £5.3m the year before.

Carluccio’s said earlier this month that there was “no other option” available to the company other than a CVA.

Restaurant chains including Byron, Jamie’s Italian and Prezzo have all closed restaurants using CVA’s since January this year.

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