India-origin restaurant Chicken King owned by Ranjit Singh Boparan in London is set to close around a third of the branches of its two brands.
The group is planning to close 27 of its outlets as part of a deal to save the wider brands due to over-supply of restaurants in the sector and a softening of consumer demand.
The Boparan Restaurant Group (BRG) unveiled plans this week to close Giraffe and Ed's Easy Diner restaurant chains.
The closure would affect over 300 workers working with the brand.
"We have been examining options for the two brands for some time and the CVA [Company Voluntary Arrangement] is the only option to protect the company," said Tom Crowley, CEO, BRG.
The CVA process involves support from landlords and other creditors as part of arrangements to save the wider business.
Boparan is referred to as "chicken king" as the founder of the two Sisters Food Group, one of the UK's largest poultry supply businesses in the West Midlands region of England.
BRG restaurant business owns a series of popular restaurant brands, including fish and chips chain Harry Ramsden. The company acquired Giraffe in June 2016, before buying Ed's Diner out of administration months later.
The company said while sales had improved since BRG bought the chains, some branches remained unprofitable. Britain's restaurant chains are battling a mix of increasing costs and consumer caution, resulting in a number of outlets facing closure over the past year.
Copyright © 2009 - 2024 Restaurant India.