North West site is casualty of restaurant group’s closure plans

Plans to close 27 Giraffe and Ed’s Easy Diner restaurants have been approved by creditors, including a North West operation, putting hundreds of jobs at risk.

The brands, under the umbrella group Giraffe Concepts, will enter a company voluntary arrangement (CVA) and close almost a third of their 87 restaurants.

Among the 21 Giraffe sites set to close is the Trafford Centre location. This leaves 24 Giraffe sites remaining.

Giraffe and Ed’s Easy Diner are owned by Boparan Restaurant Group (BRG), the Birmingham-based company which operates a number of casual dining brands including Harry Ramsden’s, and are part of the same Boparan family of business that includes 2 Sisters Food Group.

It first put forward the plan earlier this month, and it is understood that around 340 of the 1,300-strong workforce could lose their jobs.

BRG said sales had improved since the chains were acquired in 2016, but several sites remained unprofitable.

Creditors passed the CVA proposals yesterday, March 21.

Will Wright, restructuring partner at KPMG and joint supervisor of the CVA, said: “This is a critical step forward for the business, allowing Giraffe Concepts to complete its financial restructuring plan and embark on a comprehensive operational transformation programme.”

Paul Berkovi, director at KPMG, added: “Today’s vote saw a significant majority of all voting creditors choosing to approve the CVA, surpassing the 75% total required in order to pass the resolution.”

The deal will give the chains rent reductions at 13 sites, while 17 sites which are operated as franchises are unaffected by the CVA.