Frankie & Benny’s restaurant closures at 125 outlets as owning group prepares to enter company voluntary arrangement

Frankie and Benny's (pre-Covid)

The Frankie & Benny’s restaurant at Westwood may be one of the 125 that will be shut by owner The Restaurant Group.

The company is cutting its leisure estate as the downturn of the casual restaurant sector is exacerbated by the pandemic.
The Restaurant Group will use a company voluntary arrangement to restructure its business.

A CVA is a legal process that allows a company to reach a compromise or settlement agreement with some or all of its creditors, i.e. those to whom money is owed. The majority of CVAs are structured to close stores, reduce rents and change lease terms with their landlords.

The company is looking at 210 underperforming stores, including those on unfavourable lease terms. It has 125 venues marked for closure. The Frankie & Benny’s brand was launched in 1995.

Staff at neighbouring Chiquitos have also received notice of redundancy. The chain, also owned by The Restaurant Group, filed notice of intention to appoint administrators in March.

The CVA arrangements will have no impact on the group’s Wagamama, Airport concessions and pub operations.

Andy Hornby, TRG Chief Executive, said: “The issues facing our sector are well documented and we have already taken decisive action to improve our liquidity, reduce our cost base and downsize our operations.

“The proposed CVA will deliver an appropriately-sized estate for our leisure business to ensure we are well positioned despite the very challenging market conditions facing the casual dining sector.

” I would like to wholeheartedly thank all of my TRG colleagues for their continued understanding and extraordinary commitment during this unprecedented period.

The nominees for the CVA will be Clare Kennedy, Peter Saville and Catherine Williamson of AlixPartners LLP.

The attendant creditors’ meeting in respect of TRG UK Ltd is scheduled for June 29.