GBK has announced it is to enter a CVA this afternoon (24 October) following the appointment of Deloitte in September to oversee a restructuring of the business.
In an announcement, Famous Brands, the South African restaurant chain’s owners said: “The CVA process has the objective to ensure financial viability and the sustainability of the business into the future. This will provide greater security for our staff, suppliers, landlords and customers.”
The company has warned that 250 jobs could face the axe, with 17 stores earmarked for closure if the plan, which still requires approval was to go ahead. GBK operates 80 restaurants in the UK employing 2,000 members of staff. Famous Brands blamed its financial woes on a “challenging casual dining” market adding that rental costs were too high.
CVA rumours began following Deloitte’s appointment with The Times reporting that Deloitte was seeking rent reductions and site closures for the chain which recently reported a loss of £2.24m in the 22 weeks to 29 July 2018. Its like-for-like sales were also down by 10.6%.
Most recently, the burger chain was forced to apologise following an advertising campaign which saw it claim to be involved in a “curry war” with Indian restaurants.