Franco Manca has confirmed that 16 of its restaurants will close, resulting in the loss of 225 jobs. The decision follows the approval of a restructuring plan by creditors. The pizza chain, which currently operates 70 restaurants, cited 'disproportionately high' UK taxes as a key factor, making the affected sites 'no longer sustainable'.
CEO Statement
Marcel Khan, chief executive of Fulham Shore, the parent company of Franco Manca, expressed gratitude for creditor support. 'Franco Manca is a fantastic brand with a strong heritage and loyal customer base. With this agreement in place, we will put the business back on a firm footing and press ahead with strengthening our customer offer and performance,' he said.
Creditor Support
Paul Berkovi, managing director of Alvarez & Marsal, added: 'Today's vote saw a significant majority of the company's creditors support the CVA, reflecting constructive engagement across stakeholders. Against a challenging backdrop for the sector, this is an important step for Franco Manca, enabling the business to complete its financial restructuring and secure the platform for its operational transformation.'
Full List of Closing Sites
The following Franco Manca locations will close: Battersea, Bishops Stortford, Brixton, Broadway Market, Bromley, Cheltenham, Chiswick, Didsbury, Glasgow, Hove, Kilburn, Lincoln, New Oxford Street, Plymouth, Stoke Newington, and Tottenham Court Road.
Related News: The Real Greek
The announcement comes shortly after The Real Greek restaurant chain was rescued from collapse. The owners of Cote Brasserie, Karali Group, stepped in to buy 19 of its 28 outlets. A statement from Fulham Shore confirmed that 358 out of 509 jobs would be saved.
