Gourmet Burger Kitchen parent company cuts off funding

02 April 2020 by
Gourmet Burger Kitchen parent company cuts off funding

Gourmet Burger Kitchen's parent company Famous Brands has decided not to provide further financial assistance to the brand following a deterioration in sales and the closure of UK restaurants last month due to the coronavirus pandemic.

An announcement by South Africa-based Famous Brands, which also owns Wimpy, said: "It was noted that while various measures of support were offered to the industry to mitigate the economic impact of this decision, the uncertainty regarding resumption of trading was cause for concern in both markets."

Gourmet Burger Kitchen, which has 62 sites across the UK, saw its operating losses decrease by 76% last year as site closures and efficiencies associated with its CVA started to bear fruit.

The casual dining restaurant group, which completed a Company Voluntary Arrangement in December 2018, saw system-wide UK sales fall by 12.5%, attributable to the closure of 24 stores during the CVA. This was followed by the closure of a further seven properties, but like-for-like sales saw a 8.6% uptick.

The concept was launched in 2001 by three New Zealanders, including chef Peter Gordon, with the first Gourmet Burger Kitchen in London's Battersea. Famous Brands acquired GBK in 2016.

GBK cuts operating losses by 76% following CVA >>

Gourmet Burger Kitchen's CVA gains creditor approval >>

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