Frankie & Benny’s have announced they are to close 125 sites across the UK affecting 3,000 jobs. The group are negotiating for lower rents and approval from landlords to reduce their sites.
The hospitality sector are facing “well documented” problems as the pandemic forced the industry to close.
The company voluntary arrangement (CVA) agreement with landlords, if agreed, will leave the company with around 160 sites, with 25 to remain closed.
Chief executive Andy Hornby of Frankie & Benny’s said, “The issues facing our sector are well documented and we have already taken decisive action to improve our liquidity, reduce our cost base and downsize our operations.
“The proposed CVA will deliver an appropriately-sized estate for our Leisure business to ensure we are well positioned despite the very challenging market conditions facing the casual dining sector.
“I would like to wholeheartedly thank all of my TRG colleagues for their continued understanding and extraordinary commitment during this unprecedented period.”
The British Property Federation’s chief executive Melanie Leech said, “These situations are never easy, particularly now for the retail and hospitality businesses on our high streets at the sharp end of the Covid-19 pandemic.
“Property owners, however, need to take into consideration the impact on their investors, including the millions of people whose savings and pensions are invested in commercial property, as they vote on any CVA proposal.”