Coronavirus: 6,000 jobs at risk at Cafe Rouge and Bella Italia owner

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Coronavirus: 6,000 jobs at risk at Cafe Rouge and Bella Italia proprietor

Steak and chips Image copyright Informal Eating Group

The proprietor of Excessive Road restaurant chains Cafe Rouge and Bella Italia has filed intent to nominate administrators at the Excessive Courtroom.

Owner Casual Dining Group, whose brands additionally embrace the Las Iguanas chain, employs about 6,000 individuals.

The company stated the move would give it ten days' respiration area to think about "all options" for restructuring.

Eating places have been hit exhausting after shutting their doorways in March as part of Britain's virus lockdown.

Earlier on Monday, Informal Eating Group stated that it is working with advisers from corporate finance agency AlixPartners over a possible restructuring programme.

A Casual Eating Group spokeswoman stated: "As is extensively acknowledged, that is an unprecedented state of affairs for our business and, like many different corporations throughout the UK, the administrators of Informal Eating Group are working intently with our advisers as we think about our subsequent steps.

"These notifications are a prudent measure in mild of the company's position and the broader state of affairs."

Respiration area

The firm stated the move would shield it from any threatened legal motion from landlords.

The notice of intent to nominate directors provides the firm ten days to put a restructuring plan into place.

After that ten days is up, the firm might let the discover lapse, if there's a viable restructuring plan.

But if there isn't any feasible restructuring plan, the firm should both ask for an additional ten days to provide you with one, or it might appoint directors for the business.

The restructuring plan might involve so-called "company voluntary preparations" (CVAs), which allow a firm to maintain trading while decreasing rents. It might additionally see a number of of the agency's brands put into administration.

The UK's informal eating chains had a troublesome few years even earlier than the coronavirus pandemic arrived.

Many struggled with a raft of increasing prices, including upwards-only lease critiques, business charges, a rising minimum wage and the apprenticeship levy.

An increase in the price of imported meals following the sharp drop within the worth of the pound amid Brexit uncertainty was one other strain level.

Some well-known names, including Jamie Oliver's restaurant empire, the burger chain Byron, and the Chiquito and Frankie & Benny's owner have either closed sites or needed to put in place emergency financial measures.