Credit, Collections & Insolvency News
Restaurant chain Carluccio’s has entered administration. The company has 71 UK restaurants meaning that 2,000 employees at now at risk of losing their jobs.
FRP Advisory have been appointed as the administrators.
Geoff Rowley, Partner at FRP, said “We are operating in unprecedented times and the issues currently facing the hospitality sector following the onset of Covid-19 are well documented. In the absence of being able to continue to trade Carluccio’s, in the short term, we are urgently focused on the options available to preserve the future of the business and protect its employees.”
“As this fast-moving situation progresses, we will remain in regular communication with all employees and key stakeholders, and will provide a further update in due course.”
Commenting on the closure Dr Gordon Fletcher, retail expert from the University of Salford Business School said: “Carluccio’s were already struggling and at risk before this started. Social distancing has really ensured that it was a quick ending. This closure also reveals the impact that the relatively recent death of the founder has had on the business’s organisational culture.’
“Brighthouse’s closure reflects the impact of increased public scrutiny and dissatisfaction with the business model among its target customers. The closure of stores will be a challenge for its current customers who must continue to make their payments despite the shutdown.”
“While these two failures have come only a few days into the government’s stronger social distancing measures there will be others as the pressure of having no casual high street shoppers will place pressure on their cash flow and the rationale for their underlying business models.”