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The owner of Giraffe and Ed's Easy Diner is to close 27 restaurants putting hundreds of jobs at risk.The brands will enter a company voluntary arrangement (CVA) and close almost a third of their 87 restaurants.Boparan Restaurant Group (BRG) said sales had improved at the chains since they were acquired in 2016, but several sites remained unprofitable.Tom Crowley, chief executive of BRG, said: "The CVA is the only option to protect the company."He added: "The combination of increasing costs and over-supply of restaurants in the sector and a softening of consumer demand have all contributed to the challenges both these brands face."
The proposal to enter a CVA will be put to a creditor vote, with advisers from KPMG overseeing the insolvency process.
Restaurant insolvencies jump by 25%
What’s eating the restaurant tradeCreditors will vote on the proposal on 21 March with at least 75% needed to approve it for the CVA to proceed.
BRG also owns other brands, which are not involved in this CVA. These include fish and chip restaurant Harry Ramsden and the upmarket Cinnamon Collection.It is also the master franchisee for US brand Slim Chickens, which first opened in the UK last year.BRG is owned by "chicken king" Ranjit Boparan, who also owns the 2 Sister group, which supplies food to supermarkets such as Aldi, Asda, Co-op, KFC, Lidl, Marks & Spencer, Morrisons, Sainsbury's, Tesco and Waitrose.Last year, rising costs and tougher competition led to several restaurant brands shutting branches, including Prezzo, Jamie's Italian, Byron, Carluccio's, Gaucho and Gourmet Burger Kitchen.
Food industry
Company Voluntary Arrangement
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