The popular pizza chain Franco Manca has announced the closure of 16 of its locations, affecting around 225 employees. This decision follows a company voluntary arrangement (CVA) that gained approval from over 90% of its creditors. The announcements were made by the parent company, The Fulham Shore.
Restructuring Details
The closures are a response to challenges faced by the chain. Management cited “disproportionately high” taxes and the lack of business rates relief as major factors impacting its sustainability. Before the closures, Franco Manca operated 70 restaurants across the UK.
Recent Developments
This news comes shortly after the sister brand, The Real Greek, was placed into administration. Although it was quickly acquired by the Karali Group, nine of its 28 locations still had to shut down.
Executive Statements
Marcel Khan, CEO of Fulham Shore, expressed gratitude towards the creditors for their support. He stated that the CVA would allow Franco Manca to stabilize and improve its service offerings.
Expert Insights
Paul Berkovi, managing director of Alvarez & Marsal, commented on the vote’s significance. He noted that the strong backing from creditors reflected productive engagement amid a challenging environment for the restaurant sector.
Details of the Closures
The following Franco Manca locations will be closing:
- Battersea
- Bishops Stortford
- Brixton
- Broadway Market
- Bromley
- Cheltenham
- Chiswick
- Didsbury
- Glasgow
- Hove
- Kilburn
- Lincoln
- New Oxford Street
- Plymouth
- Stoke Newington
- Tottenham Court Road
Investment Background
In 2023, The Fulham Shore was acquired by Japanese restaurant group Toridoll, with the investment firm Capdesia backing the deal valued at £93.4 million. This acquisition aims to reinforce the brand’s position within the competitive restaurant market.
As Franco Manca navigates this restructuring, the focus remains on returning to stability while enhancing customer experience and operational performance.
