Restaurant chain Franco Manca is to push ahead with the closure of 16 of its sites after creditors approved a restructuring plan that will see around 225 jobs put at risk.
The pizza brand, which operates 70 restaurants across the UK, will close the venues as part of a company voluntary arrangement (CVA) to stabilise its finances amid mounting cost pressures in the hospitality sector.
Parent company The Fulham Shore said the affected restaurants were “no longer sustainable”, blaming a combination of “disproportionately high” UK taxation and the lack of business rates relief for restaurants.
The CVA proposal received backing from more than 90 per cent of voting creditors, clearing the way for the closures to proceed.
The restructuring comes as the wider group faces significant upheaval. Last week, Fulham Shore placed its sister brand The Real Greek into administration, before it was acquired by Côte owner Karali Group. The deal was followed by the closure of nine of The Real Greek’s 28 restaurants.
The developments highlight the growing strain on mid-market restaurant operators, who have faced rising labour costs, higher energy bills and sustained pressure on margins since the pandemic.
Industry figures have warned that smaller chains are particularly exposed to cost inflation and the uneven impact of tax relief policies, with several operators warning that further closures could follow across the sector.
Franco Manca has expanded rapidly in recent years, becoming one of the best-known pizza brands in the UK casual dining market, but as many peers have come under pressure from shifting consumer demand and rising operating costs.
Marcel Khan, chief executive of Fulham Shore, said: “We are grateful for the support shown by our creditors today.
“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.”
Paul Berkovi, managing director of Alvarez & Marsal, said: “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.”
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