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March 31, 2020

Covid-19: Carluccio’s enters administration, puts 2,000 jobs at risk

UK-based Italian restaurant chain Carluccio's has entered administration due to the coronavirus (Covid-19) crisis, putting approximately 2,000 jobs at risk.

UK-based Italian restaurant chain Carluccio’s has entered administration due to the coronavirus (Covid-19) crisis, putting approximately 2,000 jobs at risk.

The company said challenging trading conditions, further worsened by the coronavirus outbreak, led to its collapse.

Administrator FRP now seeks to explore various options, including a partial or complete divestment, for the future of the company.

FRP joint administrator and partner Geoff Rowley said: “We are operating in unprecedented times and the issues currently facing the hospitality sector, following the onset of Covid-19, are well-documented.

“In the absence of being able to continue to trade Carluccio’s, in the short term, we are urgently focused on the options available to preserve the future of the business and protect its employees.”

Meanwhile, most of the Carluccio’s employees will be paid through the Coronavirus Job Retention Scheme, as the administrator evaluates various options.

In 1991, the founder of the restaurant chain Antonio Carluccio opened an Italian food shop, naming it Carluccio’s. The first restaurant was opened in 1999 followed by a gradual expansion across the UK.

Currently, the company has 73 restaurants across the UK and Ireland. The deal does not include the company’s Middle Eastern franchise business.

Last week, another UK-based restaurant chain Chiquito entered administration after closing the majority of its locations permanently.

Last week, the UK Government ordered bars, restaurants and other non-essential shops to temporarily shut down to contain the spread of Covid-19.

On 31 March, the number of confirmed coronavirus cases in the UK reached 22,000.

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