Retail executives and business owners across the country are shocked by the announcement made by Casual Dining Group that they have gone into administration.
What companies does Casual Dining Group own?
Casual Dining Group was the umbrella owner of varying food restaurants, including the high street staples Bella Italia and Cafe Rouge, as well as the immensely popular Las Iguanas.
What does administration mean for Casual Dining Group?
Upon entering administration, 91 of Casual Dining Group’s outlets will close immediately instead of reopening under government guidelines on July 4th with the rest of the food industry.
Out of 6,000 staff members, it’s estimated that 1,900 will lose their jobs immediately, with retail executives braced for many more to leave and seek employment elsewhere.
The appointed administration company, Alix Partners, are currently taking offers for the remaining assets of Casual Dining Group, which could pique the interest of many other companies.
What’s the timeline of Casual Dining Group’s administration?
Casual Dining Group had been suffering losses for quite some time, as had many other chains and businesses thanks to the COVID-19 pandemic. Casual dining chains had been victims to stark dips in revenue even before the lockdown happened, as more and more customers shifted to alternative options for their dining.
The group filed for administration at the High Court in May due to their increasing inability to pay rent on many of their premises.
However, not all hope may be lost. As of Thursday, 2nd July, the firm reports multiple offers for its remaining assets had already been laid out on the table, and Casual Dining Group expressed their intent to pursue such offers.
Chief executive James Spragg said, “Working alongside the administrators, we will do everything we can to support them through this process, with a view to preserving as much employment as we are able to.”
What areas will be hardest hit by the Casual Dining Group administration?
The majority of premise closures will occur in England, but there will also be closures in Wales and Scotland too. At the time of writing, 159 out of 250 outlets will remain open for the time being, though this is subject to change should the administration rescue attempts fail.
This announcement of administration will no doubt be the latest blow for retail executives, as well as another body on the quickly growing pile of businesses that have fallen thanks to COVID-19. This comes after Byron Burger also announced plans to appoint administrators.