Italian restaurant and deli chain Carluccio’s has received approval for its proposed company voluntary arrangement (CVA) from its creditors to close around 30 locations in the UK.
The company proposed the CVA through UK-based KPMG on 17 May this year. The restaurant is currently owned and operated by Dubai-based retail major Landmark Group.
Landmark Group is reportedly investing $13m in upgrading the remaining restaurants. Last month, Landmark said that the upgrade plan was subject to a rescue plan, reported by thenational.ae.
Carluccio’s UK spokesman was quoted by the news website as saying: “Those sites are completely unaffected. It’s a UK process so only affects around 30 restaurants in the UK.”
Carluccio’s currently operates 103 restaurants across the UK, which will be separated into two categories under the CVA proposal.
A total of 69 locations will come under category one sites, which will be retained at current rents.
The remaining 34 category two sites will see a reduction in the rent, equivalent to 67%, which will be paid for six months.
KPMG restructuring partner and joint supervisor of the CVA Will Wright 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.”
Headquartered in the UK, the menu items offered by the restaurant chain include stuzzichini, antipasti, pasta, salads, pizza, desserts and drinks.