Future of East Mids burger restaurants thrown into doubt

The future of two East Midlands burger restaurants has been thrown into doubt after Gourmet Burger Kitchen (GBK) announced it is seeking a company voluntary arrangement (CVA) which could see it close 17 restaurants.

GBK has restaurants in Leicester and Nottingham and is the latest casual dining chain to fall upon hard times. Earlier this week Carluccio’s announced it was closing its Nottingham city centre restaurant as part of its CVA.

Up to 250 jobs could be lost at GBK if it closes the restaurants it has earmarked as underperforming. Earlier this month, the company posted a loss of £47m.

Managing director Derrian Nadauld said: “We are having to take tough but necessary actions to reduce our fixed cost base and restore long-term profitability.

“This [CVA] will provide greater security for our staff, suppliers, landlords and customers.”

The CVA process is being run by Grant Thornton. Matthew Richards, director at Grant Thornton, said: “The casual dining trading environment in the UK remains extremely challenging, driven by a change in dining behaviour, long-term consumer trends and increased competition.”