Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Carluccio’s, the UK-based Italian restaurant chain has entered administration and it has been declared insolvent, putting all its 2,000 employees at risk of redundancy.
The chain’s 73 restaurants across the UK have been closed since 20 March, when the government ordered all pubs and restaurants to close. The majority of Carluccio’s staff currently receive 80% of their pay through the UK Government’s Coronavirus Job Retention Scheme.
The Administrators said that the Covid-19 outbreak had exacerbated the company’s financial difficulties, while commentators noted that the threat of bankruptcy was already present before the outbreak. In addition, a representative of the Unite Union said that they were considering turning to an Employment Tribunal for compensation, because the administration was announced without a consultation with employees and their representatives.
The company was unable to access the government scheme for support during coronavirus because their revenues exceeds the limit and at the same time its credit rate is too low for support of the Bank of England.
Carluccio’s is an Italian food restaurant chain, active in UK since 1991. In 2018 (500 jobs lost), it was forced to negotiate with its debtors and close a third of its outlets to avoid bankruptcy.
UPDATE 22/05/2020
The joint administrators on the sale of Carluccio’s have announced that a buyer acquired 30 of the chain’s 70 restaurants, saving 800 jobs. The final number of redundancies is 1,019.
Eurofound (2020), Carluccio's, Bankruptcy in United Kingdom, factsheet number 100226, European Restructuring Monitor. Dublin, https://dev.eurofound.europa.eu/restructuring-events/detail/100226.
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