Franco Manca confirms it will be closing down 16 sites

Parent firm Fulham Shore shared last month that it planned to shut sites as part of a company voluntary arrangement (CVA) process.

Franco Manca currently runs 70 restaurants but said it has been knocked by “disproportionately high” UK taxes and a lack of business rates relief for restaurants.

The affected restaurants were “no longer sustainable” as a result.

Franco Manca’s CVA proposal received backing from more than 90% of voting creditors.

A CVA is an insolvency procedure that allows a struggling company to strike a deal with its creditors to pay back its debts while still trading.

Which Franco Manca stores will be shutting?

The following Franco Manca sites will shut:

• Battersea
• Bishops Stortford
• Brixton
• Broadway Market
• Bromley
• Cheltenham
• Chiswick
• Didsbury
• Glasgow
• Hove
• Kilburn
• Lincoln
• New Oxford Street
• Plymouth
• Stoke Newington
• Tottenham Court Road

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.”

The Real Greek announces it will be closing down 9 restaurants

Franco Manca is not the only restaurant chain that has announced closures recently, as The Real Greek will be stopping operations at nine of its sites.

A sister restaurant brand to the pizza chain, Fulham Shore, placed The Real Greek into administration.

It was immediately snapped up by Cote owner Karali Group, but announced the closure of nine of its 28 restaurants.

Although more than 100 jobs will be lost, the new owner said it will secure the future of 358 workers.

Paul Berkovi, managing director at administrators Alvarez & Marsal, said: “We have worked closely with The Real Greek’s management team and are pleased to have completed a transaction that secures a future for a restaurant group enjoyed by diners over many years.

“Our immediate focus as administrators will be to provide a smooth transition for the business and to support employees affected by site closures.

“We are grateful to all stakeholders for their constructive engagement throughout this process.”

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