Hundreds of jobs are at risk as both restaurant chains, Giraffe and Ed’s Easy Diner has announced their intention to enter into a company voluntary arrangement (CVA), to close 27 out of 87 restaurants.
Boparan Restaurant Group (BRG) who own the two brands said, several sites have remained unprofitable although like-for-like sales had improved.
Tom Crowley, chief executive of BRG, said: “We have been examining options for the two brands for some time and the CVA is the only option to protect the company.
“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.”
Advisers from KPMG are to oversee the CVA.
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