Gourmet Burger Kitchen (GBK) is to close 26 of its restaurants, even though it’s been saved from administration.
The move will result in the loss of 362 jobs.
The restaurant chain has been bought in a rescue deal by Boparan Restaurant Group, which also pulled Carluccio’s out of insolvency earlier this year.
Why are the restaurants closing?
GBK said it had started to see improvements in sales last year after a major restructuring process in 2018, which saw it shut a number of its sites as part of a company voluntary arrangement (CVA).
However, the company, which had been owned by South African group Famous Brands, later slid into administration after the coronavirus outbreak impacted on its liquidity and potential to be sold as a solvent business.
The group has now been sold in a pre-pack administration deal, which was agreed after working with insolvency specialists at Deloitte.
But this means the other 26 restaurants will close with 362 workers being made redundant.
The purchase will see 35 sites and 669 jobs saved from the chain’s original network of 61 restaurants and 1,031 employees.
However, this means that the remaining 26 restaurants will have to close, making 362 workers redundant.
Gavin Maher, joint administrator at Deloitte, said: “We have been working closely with the management team under very difficult market conditions to try and find a funding solution and I am glad to be able to announce the rescue of this well-loved brand together with a large proportion of the sites and workforce.
“However, it’s clearly disappointing that a number of sites have had to close resulting in today’s redundancies.”
Which restaurants will close?
The following 26 GBK restaurants in the UK are to be closed:
AngelAylesburyBaker StreetBatterseaBayswaterBerner StreetBrighton MarinaBrunswickCanterburyCardiff LibraryChichesterClink StreetCovent GardenEdinburghMaidstoneNottinghamRichmondSheffieldSouthamptonSpitalfieldsTower BridgeWalton on ThamesWandsworthWatfordWindsorWorcester