Carluccio’s approves CVA putting 500 jobs at risk

The creditors of Italian dining chain Carluccio’s have voted in favour of a company voluntary agreement (CVA) which could see more than 30 of its outlets closed and put 500 jobs at risk.

On Thursday 31 May, 91% of its creditors approved the decision. The 34 restaurants at risk would reduce rent bills by a third for the next six months. After that period is over, the outlets may face closure unless a new deal is agreed.

The chain’s owner, Landmark Group, has agreed to invest £10m into the other 69 restaurants which will be unaffected by the CVA for refurbishment.

Will Wright, restructuring partner at KPMG and joint supervisor of the CVA, said: “This is an important step forward for the business, allowing Carluccio’s to complete its financial restructuring plan and embark on a comprehensive operational transformation programme.

“Today’s vote saw 91% of all voting creditors choosing to approve the CVA, surpassing the 75% total required in order to pass the resolution.”

Mark Jones, chief executive of Carluccio’s, added: “We are pleased that our proposal for a CVA has been approved by our creditors. This vote was vital to protect our strong core business and the Carluccio’s brand.”