Gourmet Burger plans CVA as casual dining problems bite deeper
Hundreds of jobs could be at risk after Gourmet Burger Kitchen owner Famous Brands outlined an emergency store closure plan as tough trading conditions in the casual dining sector continue.
GBK, which was bought by Wimpy owner Famous Brands, based in South Africa, in 2016 for £120m, said the board would get a company voluntary arrangement (CVA) process started with help from advisers at Grant Thornton.
The company has 80 restaurants across the UK, including three in Birmingham, and employs around 2,000 staff.
In a statement to the Johannesburg Stock Exchange, the company said: “A decision has been taken by the board of GBK to initiate a Company Voluntary Arrangement (CVA) process with the assistance of Grant Thornton.
“The CVA process has the objective to ensure financial viability and the sustainability of the business into the future.”
It is understood that around 17 restaurants have been earmarked for closure, which would affect 250 jobs.
The casual dining sector has faced tough times in recent months.
Upmarket burger chain Byron also entered a CVA at the end of January that secured landlord approval to close 20 of its 67 sites.
After failing to secure a CVA last year, the Handmade Burger Co closed nine of its 20 sites after collapsing into administration. The chain was later bought by a private investor and all 20 sites reopened.
