Carluccio's falls into administration with 2,000 jobs at risk
Carluccio's has fallen into administration after challenging trading conditions, exacerbated by the coronavirus crisis, hit cashflow.
The group of 71 casual dining Italian restaurants had been founded in 1991 by chef Antonio Carluccio.
Administrators Geoff Rowley and Phil Reynolds of FRP have said they are "considering all options" for the group, including the mothballing of the business and utilising government support, as well as looking for a buyer for all or part of the business.
The administrators have said they will furlough the majority of the company's 2,000 employees and access the government's coronavirus Job Retention Scheme, which will cover 80% of wages up to £2,500 a month for a minimum of three months.
Last week staff had been told they would receive 50% of wages in March's payroll, after the forced closure of all sites by coronavirus.
Chief executive Mark Jones had said: "These are difficult and very challenging times for which we are doing absolutely everything we can and the Carluccio's board is in constant talks with its stakeholders to determine a way forward."
Rowley 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.
"We welcome the latest update on the coronavirus Job Retention Scheme and look forward to working with HMRC to access the support it provides for companies in administration and their 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."
Carluccio's underwent a CVA in May 2018, with the brand later announcing a £10m funding injection from shareholder Landmark Group to roll out changes in menus, design and operation across the remaining portfolio.
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