Restaurant chains Giraffe and Ed’s Easy Diner are set to have around a third of their outlets shuttered under a plan for their parent company to keep its finances afloat.
According to a Sky News report on Monday, the Boparan Restaurant Group, controlled by ‘chicken king’ food magnate Ranjit Boparan, has earmarked around 27 sites for the axe, risking hundreds of jobs.
READ: CVAs explained: What is a company voluntary arrangement?
The firm said it had been forced to seek a company voluntary arrangement (CVA), an agreement between itself and creditors, to protect itself from difficulties caused by what its chief executive Tom Crowley said was a “combination of increasing costs and over-supply of restaurants”.
CVAs have been deployed by other struggling restaurant chains recently to help keep themselves above water, most notably burger chain Byron and Italian restaurants Prezzo and Carluccio’s, as well as other high street retailers like Mothercare PLC (LON:MTC) and Carpetright PLC (LON:CPR).