Franco Manca, a popular pizza chain, is set to shut down 16 out of its 70 restaurants, resulting in the loss of approximately 225 jobs. The company’s parent, The Fulham Shore, has received creditor approval to restructure its operations.
The decision to close the affected restaurants was driven by the challenges posed by high UK taxes and the absence of business rates relief for the restaurant industry. This move was deemed necessary as these locations were no longer financially viable.
The company’s Company Voluntary Arrangement (CVA) proposal garnered support from over 90% of voting creditors, paving the way for its implementation. Additionally, Fulham Shore recently placed its sister brand, The Real Greek, into administration, with nine out of its 28 restaurants being closed under new ownership by the Karali Group.
Marcel Khan, the CEO of Fulham Shore, expressed gratitude for the creditors’ support, emphasizing Franco Manca’s strong brand reputation and customer loyalty. The restructuring aims to stabilize the business and enhance its customer offerings and performance.
According to Paul Berkovi, Managing Director of Alvarez & Marsal, the approval of the CVA marks a crucial step for Franco Manca amid sector challenges, enabling the company to restructure financially and position itself for operational improvements.
The list of restaurant sites scheduled for closure includes the following locations.
