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Carluccio's creditors approve CVA and closure of up to 30 sites

31 May 2018 by
Carluccio's creditors approve CVA and closure of up to 30 sites

Creditors to Italian restaurant group Carluccio's have approved a Company Voluntary Agreement (CVA), including the expected closure of up to 30 sites, with 91% voting in favour.

The group will undertake an investment programme in the remaining sites, supported to the tune of £10m by majority shareholder Landmark Group.

CEO Mark Jones said: "We are pleased that our proposal for a CVA has been approved by our creditors. This vote was vital to protect our strong core business and the Carluccio's brand.

"I would like thank our landlords for their support. We now look forward to a positive future and the on-going development of the Carluccio's business and of course our passionate people.

"The positive outcome enables us to kick-start an extensive programme of reinvigoration across our estate - with the aim of elevating the guest experience and underpinned by our brand ethos of minimum of fuss, maximum of flavour, which was so passionately championed by our founder Antonio Carluccio."

Carluccio's is the latest victim of the downturn in casual dining which has already seen the likes of Jamie's Italian, Byron and Prezzo undertake CVAs and announce widespread closures.

Will Wright, restructuring partner at KPMG and joint supervisor of the CVA, said: "This is an important step forward for the business, allowing Carluccio's to complete its financial restructuring plan and embark on a comprehensive operational transformation programme.

"Today's vote saw 91% of all voting creditors choosing to approve the CVA, surpassing the 75% total required in order to pass the resolution."

Today's approval comes after Jones and CFO Andrew Campbell, who both joined the business in January, undertook a review which concluded that "urgent action was required".

He had previously said that the CVA would "safeguard the future of the group, protecting this strong core business. It is therefore in the best interests of the company, its people, its creditors and its customers."

Carluccio's was founded Carluccio's Caffe in 1998 by Antonio Carluccio and his then wife Priscilla, with the support of co-directors Simon Kossoff, Stephen Gee and Peter Webber. It went on to become known as one of the UK's best-known casual dining chains, offering authentic Italian food at reasonable prices.

Carluccio, who died in November 2017, and his fellow directors sold the business to Dubai-based Landmark Group seven years ago, and Carluccio subsequently acted as a consultant.

Accountancy firm KPMG has been appointed to oversee the restructing of the business.

Carluccio's confirms intention to enter CVA with 34 sites considered for closure>>

Antonio Carluccio dies aged 80>>

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