Casual Dining Group enters administration
The group, which owns the Bella Italia, Café Rouge and Las Iguanas brands, appointed Clare Kennedy, Peter Saville, Daniel Imison and Catherine Williamson of Alix Partners LLP as joint administrators earlier today (2 July), ahead of an expected sale of the business.
CDG says its board has determined that in today’s 'extreme operating environment', it is in the best interests of all stakeholders for the group to enter administration, which will enable it to conclude negotiations with landlords regarding the estate.
It adds that the decision is 'a critical step' to be resolved prior to the conclusion of the ongoing sale process.
The board and its advisors have received 'multiple offers' for the business, and the administrators will now seek to progress these.
“After reviewing all our options with advisors, it became clear that we needed to take this action in order to protect the business and secure the best possible future for Casual Dining Group as we look to conclude a potential sale," says CEO James Spragg.
"We are acutely aware of our duty to all employees and recognise that this is an incredibly difficult time for them. Working alongside the administrators we will do everything we can to support them through this process with a view to preserving as much employment as we are able to.”
The closures, which are spread across the group's various brands, will impact 1,909 employees in CDG's 5,959-strong workforce.
"We appreciate that this is an extremely difficult time for all those associated with Casual Dining Group," says Kennedy.
"Our immediate priorities are to assist those whose employment has been affected by today’s announcement and to secure a sale for the group in order to protect jobs and provide the Group’s much-loved brands with a sustainable platform for the future."
