Frankie and Benny’s owner to cut up to 3,000 jobs
The coronavirus pandemic has claimed another 3,000 UK jobs after the Restaurant Group confirmed plans to shut 125 of its outlets.
The firm said the axe would fall mainly on its Frankie and Benny’s restaurants, but other chains such as Garfunkel’s and Chiquito will also be affected.
Meanwhile, fashion chain Quiz announced it would place its stores in administration, putting jobs at risk.
It said its loss-making shops were not currently “financially viable”.
‘Very challenging’ conditions
The Restaurant Group is restructuring part of its business through an insolvency procedure known as a company voluntary arrangement (CVA).
As well as the closures of some of its eateries, the company said it would attempt to renegotiate rents and terms on a further 85 sites.
The Restaurant Group’s chief executive, Andy Hornby, said: “The proposed CVA will deliver an appropriately-sized estate for our Leisure business to ensure we are well positioned despite the very challenging market conditions facing the casual dining sector.”
The Restaurant Group also owns the Wagamama restaurant chain, but this will not be affected by the restructuring.
Quiz said it would put its 82 outlets in the UK and Ireland into administration before buying them back so it can negotiate better rental terms with its landlords.
It said some 822 employees out of a total of 915 would transfer to the new company.
Quiz’s chief executive, Tarak Ramzan, said the company’s shops were already facing challenges before the coronavirus outbreak as fewer people were shopping in store.
However, he said that “the significant economic uncertainty we now face as consumers and businesses emerge from the COVID-19 pandemic” meant that the group had to be restructured.
The coronavirus outbreak and the subsequent lockdown has prompted thousands of job cuts across the UK economy.
On Tuesday, Debenhams said a further 300 jobs would go and in recent weeks Rolls-Royce, British Airways, EasyJet and car dealership Lookers have announced extensive cuts.