LONDON, March 31 — Britain-based Italian restaurant chain Carluccio's said yesterday it has collapsed into administration, blaming challenging conditions made worse by the coronavirus outbreak.
The company said in a statement that it has appointed advisory firm FRP to oversee administration — the process whereby a troubled company calls in outside expertise to try and minimise job losses.
The news threatens 2,000 employees at Carluccio's, which has 71 restaurants around Britain.
The decision was taken “after a sustained period of challenging trading conditions, which have been exacerbated by Covid-19 and the broader issues currently facing the UK's retail and hospitality sector,” the statement said.
“The company faced significant cashflow pressures and as a result was ultimately unable to meet its financial obligations.”
Administrators will access the British government's Coronavirus Job Retention Scheme to furlough most of the staff while assessing options.
Meanwhile, they are meeting interested parties regarding the sale of all or chunks of the business.
Carluccio's said its Irish operations and Middle East franchises would not be affected by the decision. — AFP