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Carluccio’s collapses after Covid-19 compounds issues

Italian restaurant chain Carluccio’s has collapsed and appointed administrators from FRP Advisory.

The chain cited “challenging trading conditions”, which were made worse by the coronavirus outbreak.


Most of its 2,000 employees will be paid through the government’s job retention scheme, which will cover 80 percent of their salaries, it said.


Geoff Rowley, joint administrator and partner at FRP, 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."


The chain had previously undertaken a CVA in 2018, and later admitted that it had been two weeks from closure, before the CVA was agreed.


This kickstarted an extensive programme of reinvigoration across the cafes estate. Masterminded by KPMG, the CVA involved the restaurant paying rent reductions of up to a third on 34 of its 103 sites across the UK. But the challenging conditions for the casual dining sector hit Carluccio’s throughout 2019 and into 2020, before the lockdown compounded the trading environment. At the time of entering administration, the business had just over 70 cafes in operation.


More to follow.

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