Popular Meadowhall restaurant at risk as diner chains announce plans to close 27 sites

The owner of Giraffe and Ed's Easy Diner is to close 27 restaurants putting hundreds of jobs at risk.

The brands will enter a company voluntary arrangement (CVA) and close almost a third of their 87 restaurants.

Giraffe has a branch at Meadowhall.

Giraffe has a branch at Meadowhall.

The Ed’s Easy Diner branch at Meadowhall closed a couple of years ago but Giraffe still has a branch in the Oasis Food Court at Meadowhall.

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Boparan Restaurant Group (BRG) said sales had improved at the chains since they were acquired in 2016, but several sites remained unprofitable.

Tom Crowley, chief executive of BRG, said: "The CVA is the only option to protect the company."

He added: "The combination of increasing costs and over-supply of restaurants in the sector and a softening of consumer demand have all contributed to the challenges both these brands face."

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The proposal to enter a CVA will be put to a creditor vote, with advisers from KPMG overseeing the insolvency process.

BRG snapped up Giraffe from Tesco in 2016, before combining it with Ed's Easy Diner, which it had bought in a pre-pack administration the same year.

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The company owns 70 branches of the two chains, with 17 franchised restaurants unaffected by the CVA.