Dubai-based Landmark Group is set to invest £10 million ($13.2 million) as part of a rescue plan for Italian restaurant chain Carluccio's, it has been announced.
Carluccio's could close up to 30 restaurants in the rescue plan under a Company Voluntary Arrangement (CVA) after more than 90 percent of creditors approved the plan, which will allow it to close loss-making branches.
The investment by Landmark, which agreed in September 2010 to buy Carluccio's in a transaction that valued the UK operator of Italian restaurants and food stores at more than £90 million, will be used to upgrade the surviving outlets.
The 103-strong chain is losing a battle against higher costs and increased competition, it was reported in the UK.
Chief executive, Mark Jones, was quoted as saying: “The business is not immune from well-documented pressures sweeping through the casual dining sector and indeed much of the wider UK high street, including retail.
“Regrettably, this is the only course of action available and if approved, will safeguard the future of the group, protecting this strong core business.”
Carluccio’s was founded in 1998 by Antonio Carluccio and his then wife Priscilla.
Carluccio, who died in November 2017, sold the business to Dubai-based Landmark Group seven years ago, and Carluccio subsequently acted as a consultant.For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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