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Shrewsbury and Birmingham Carluccio's to close as 1,000 jobs go in rescue deal

By James Pugh | Birmingham | Business | Published:

The future of some of the region's Carluccio's restaurants are in doubt after the dining chain was bought in a rescue deal.

Carluccio's in The Square, Shrewsbury

The rescue deal will save 30 of its restaurants – including Solihull – but does not include restaurants in Shrewsbury town centre and Birmingham.

Carluccio's has been bought by Giraffe and Ed's Easy Diner owner Boparan Restaurant Group (BRG) in a move which will save 800 jobs.

However, administrators FRP Advisory said it was unable to secure the future of Carluccio's 40 other restaurants, resulting in 1,019 redundancies.

Phil Reynolds, joint administrator and partner at FRP, said: "The Covid-19 lockdown has put incredible pressure on businesses across the leisure sector, so it has been important to work as quickly and as decisively as possible in an extremely challenging business environment to secure a sale.

Covid-19 coverage:

"It ensures the future of the Carluccio's brand in the UK casual dining scene, retains a significant network of sites across the country and, critically, transfers a considerable number of jobs."

Satnam Leihal, managing director of BRG, said: "We welcome Carluccio's colleagues to BRG.

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"This acquisition is in line with our strategy to grow our restaurant group with quality brands.

"Whilst it is an extremely challenging time for the sector, we believe quality hospitality businesses will recover in the long term as people return to eating out."

The Italian chain – which was founded by Antonio Carluccio in 1991 – slid into administration in March after the impact of coronavirus exacerbated the firm's long-standing financial difficulties.

Carluccio's had been owned by Dubai-based Landmark Group, which bought the business for £90 million in 2010.

Boparan Restaurant Group is owned by Bilston-born Ranjit Singh Boparan, of Two Sisters Food Group.

James Pugh

By James Pugh
@JamesP_Star

Shropshire Star Business and Farming Editor.

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