Carluccio’s has unveiled a restructuring plan that will likely lead to 34 restaurant closures.
The business, founded by the late Antonio Carluccio in 1999, has 103 restaurants in the UK but is seeking approval from landlords to slash rents in a restructuring plan known as a Company Voluntary Agreement (CVA).
Put together by restructuring advisers at KPMG, it will allow the firm to pay a reduced rent for six months while the board engages with landlords about possible closures.
Carluccio’s CEO Mark Jones said: “Regrettably, this is the only course of action available and if approved will safeguard the future of the group, protecting this strong core business.
“It is therefore in the best interests of the company, its people, its creditors and its customers.”
Landlords will vote on the CVA on May 31, and Carluccio’s will need approval from 75% of creditors for the plan to go ahead.
Other restaurants that have undertaken CVAs so far this year include Byron, Prezzo and Jamie’s Italian.
A number of retailers, including New Look and House of Fraser, have also prepared CVAs in a bid to stay afloat.
The high street is under strain from a combination of rising rents, business rates and labour costs, at a time when discretionary incomes have also come under pressure.