Fears for dozens of Wigan Frankie and Benny's restaurant workers as chain confirms widespread closures
Dozens of furloughed Wigan and Leigh restaurant workers' jobs hang in the balance after their employer confirmed it was permanently closing a large number of its outlets.
Up to 3,000 jobs are on the line nationally as the owner of Frankie and Benny’s announced it was going to close 125 of its sites across the country.
The Restaurant Group said it was seeking approval from its landlords for a deal that would let it reduce the number of restaurants it runs, and negotiate lower rents for many of those left over.
The chain employs around 50 staff at its sites in Wigan and Leigh. Individual restaurants have not yet been identified publicly for closure.
Bosses said the hospitality industry was facing “well documented” problems, after the coronavirus pandemic forced many in the sector to close their doors.
If landlords approve the deal, known as a company voluntary arrangement (CVA), it will leave the firm’s leisure arm with about 160 sites.
It will also allow it to exit about 25 restaurants which have already been closed.
The Restaurant Group also owns pan-Asian chain Wagamama, and runs several pubs and concessions in airports. These will not be affected by the news, it said.
The stores that will close are “principally” Frankie and Benny’s restaurants, it added.
“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,” said chief executive Andy Hornby.
“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 British Property Federation said it had been talking to The Restaurant Group before it proposed the CVA, but it would be up to individual landlords to decide how to vote on the deal.
The federation’s chief executive Melanie Leech said: “These situations are never easy, particularly now for the retail and hospitality businesses on our high streets at the sharp end of the Covid-19 pandemic.
“Property owners, however, need to take into consideration the impact on their investors, including the millions of people whose savings and pensions are invested in commercial property, as they vote on any CVA proposal.”
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