Gourmet Burger Kitchen set to close UK branches in a bid to save business
Burger chain Gourmet Burger Kitchen has said it will be forced to close 17 branches as the group aims to save the restaurant.
The owners, based in South Africa, have appointed accountancy firm Grant Thornton to initiate a company voluntary arrangement (CVA) – an insolvency procedure used by struggling firms to ditch underperforming sites.
In a statement, the owners of Prezzo, Famous brands said: “The CVA process has the objective to ensure financial viability and the sustainability of the business into the future.
“Whilst this process evolves, shareholders will be updated when appropriate and are requested to continue to exercise caution in the trading of Famous Brands shares.”
The group has warned that 250 jobs were at risk, across its 80 restaurants in the UK, with GBK employing 2,000 people.
The news follows a string of high street outlets and restaurant groups which have also resorted to the measure to close outlets over the past 12 months.
Earlier this year, Carluccio’s and 62 Prezzo and Chimichanga restaurants in March closed its doors.
Prezzo reported earlier this year that like-for-like sales had fallen 8.1% for the year to December 2017, while revenue dropped 3.3% over the same period.