Frankie and Benny's stores to close as The Restaurant Group announces company restructure

Frankie and Benny's is the latest casualty of the coronavirus crisis, with owners set to close 125 restaurants.

The Restaurant Group (TRG) said it is making the change to 'reduce the size of its leisure estate and rental cost base'.

The Group is proposing a Company Voluntary Arrangement (CVA), which will leave the company with 160 sites and see rents renegotiated at another 85 sites.

TRG said the move will mainly affect Frankie and Benny's restaurants, but could also see Garfunkel's and Chiquito restaurants close.

It has not been announced whether the Bury St Edmunds restaurant, on Parkway, will be among those to close.

Andy Hornby, chief executive, said: "The issues facing our sector are well documented and we have already taken decisive action to improve our liquidity, reduce our cost base and downsize our operations.

"The proposed CVA will deliver an appropriately-sized estate for our Leisure business to ensure we are well positioned despite the very challenging market conditions facing the casual dining sector.

"I would like to wholeheartedly thank all of my TRG colleagues for their continued understanding and extraordinary commitment during this unprecedented period."

TRG plans to enter into a Company Voluntary Arrangement (CVA), which will leave the company with 160 sites.

Melanie Leech, chief executive of the British Property Federation, said: "These situations are never easy, particularly now for the retail and hospitality businesses on our high streets at the sharp end of the Covid-19 pandemic.

"Property owners, however, need to take into consideration the impact on their investors, including the millions of people whose savings and pensions are invested in commercial property, as they vote on any CVA proposal.

"The Restaurant Group and Alix Partners engaged with the BPF before launching this CVA proposal. This has provided us an opportunity to improve understanding of property owners' interests and concerns, but ultimately it will be for individual property owners to decide how they will vote on the CVA."

TRG also owns Wagamama but this will not be affected by the restructure.