Eastbourne restaurant at risk as chain announces 125 closures

The Restaurant Group (TRG) – which owns Frankie and Benny’s, Wagamama and Chiquito – announced on Wednesday (June 10) it will enter into a company voluntary arrangement (CVA).

This is a legal process that allows a company to reach a compromise or settlement agreement with some or all of its creditors, for example, those to whom they owe money to.

The announcement comes after a review identified 210 outlets were either underperforming, on unfavourable lease terms, not expected to make future profits, or had a combination of all three of these factors.

TRG was asked if its Eastbourne Frankie and Benny’s site, in Sovereign Harbour Retail Park, would be closing. It said this announcement would be made after a creditors’ meeting on June 29.

TRG chief executive Andy Hornby 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.”

Mr Hornby said the action will lead to an ‘appropriately-sized’ estate for their leisure business, which will leave the company ‘well-positioned’ despite the ‘challenging’ market conditions facing the casual dining sector.

He said, “I would like to wholeheartedly thank all of my TRG colleagues for their continued understanding and extraordinary commitment during this unprecedented period.”

A company spokesperson said the arrangements will have no impact on the group’s Wagamama, airport concessions and pub operations, and that assuming the CVA is approved and implemented successfully, 160 sites will remain operating in their portfolio.

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