Casual Dining Group appoints restructuring adviser

By Sophie Witts contact

- Last updated on GMT

Casual Dining Group appoints restructuring adviser

Related tags: Casual dining group, Casual dining, Restaurant

Casual Dining Group (CDG) has called in a restructuring adviser in a bid to reduce its rent bill amid tough trading on the high street.

The Sunday Times​ reports that the company, which owns brands such as Café Rouge, Las Iguanas and Bella Italia, is working with Alvarez & Marsal to help cut its costs.

CDG chief executive Steve Richards told the paper a “small number” of its c.300 restaurants were lossmaking “due to high rents and rates” in a “difficult trading environment”.

The group, previously named Tragus, entered a Company Volunatary Agreement back in 2014​ ​with a plan to close around 40 restaurants.

Losses at CDG rose 18% to £60m in the year to May 2017, despite a 2.2% rise in like for like sales.

It announced a £30m refinancing package​ in July this year which it said was to position it for growth in a “challenging” market.

The company has sought to diversify in to delivery to tackle rising costs. This year has seen the launch of croque monsieur-focused Stack and Grill​ and the Chef and Rooster chicken concepts out of Café Rouge kitchens, as well as Blazing Bird from Las Iguanas.

CDG also recently partnered with Tesco to launch a range of Bella Italia-branded ready meals.

Related topics: Business

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