The Restaurant Group (TRG) is expected to close around 125 sites and see improved rental terms on others after a Company Voluntary Arrangement (CVA) gained approval.
More than 82% of creditors voted in favour of the CVA, which will impact TRG's ‘leisure' estate, and the principal brand affected will be Frankie & Benny's, which currently has 226 sites. The group's Chiquito, Coast to Coast and Garfunkel's brands will also be also impacted, but the CVA will see no change to Wagamama sites, airport concessions or pub operations, which sit outside the leisure portfolio.
The CVA will leave TRG's leisure portfolio with 160 sites, with improved rent or lease terms agreed in relation to 85 of these. It has previously been estimated that 3,000 jobs could be at risk.
The CVA will also see the group exit leases on a further 25 previously closed sites, which it has said will help ensure "a long-term sustainable business for all stakeholders".
Chief executive Andy Hornby said: "These are exceptionally challenging times for our sector and TRG is extremely grateful for the support shown by our creditors in today's vote.
"The approval of the CVA is a critical component in ensuring the future prospects for our ‘leisure' business. I would like to wholeheartedly thank our colleagues who have shown extraordinary commitment throughout the process."