GOURMET Burger Kitchen (GBK) is to shut 26 eating places and axe 362 roles regardless of being saved from administration.
The chain has been purchased in a rescue deal by Boparan Restaurant Group, which additionally snapped Carluccio’s out of insolvency earlier within the pandemic.
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GBK has revealed plans to axe 26 eating places leaving a whole bunch of employees with out jobsCredit score: Alamy
It would see 35 websites and 669 jobs saved from GBK’s authentic community of 61 eating places and 1,031 staff.
However this implies the opposite 26 eating places will shut with 362 employees being made redundant.
GBK mentioned it had began to see enhancements in gross sales final 12 months after a significant restructuring course of in 2018, which noticed it shut a raft of sites as a part of an organization voluntary association (CVA).
However the firm, which had been owned by South African group Well-known Manufacturers, mentioned it slid into administration after the coronavirus disaster impacted its liquidity and potential to be offered as a solvent enterprise.
Which GBK eating places are closing?
HERE are the 26 GBK eating places closing because of the administration:
- Angel
- Aylesbury
- Baker Avenue
- Battersea
- Bayswater
- Berner Avenue
- Brighton Marina
- Brunswick
- Canterbury
- Cardiff Library
- Chichester
- Clink Avenue
- Covent Backyard
- Edinburgh
- Maidstone
- Nottingham
- Richmond
- Sheffield
- Southampton
- Spitalfields
- Tower Bridge
- Walton on Thames
- Wandsworth
- Watford
- Windsor
- Worcester
NB: Glasgow individually closed for good earlier than Deloitte was appointed to work by an administration deal.
The sale has gone by as a pre-pack administration deal, which was labored by with insolvency specialist Deloitte.
It makes GBK only one in a protracted line of restaurant chains to battle with the results of the pandemic with Byron Burger, Bella Italia and Cafe Rouge, and Pizza Express all making web site closure and job cuts.
Figures revealed this week by the Workplace for Nationwide Statistics reveal that 673,000 UK jobs have been lost since the crisis began, taking the jobless complete to a three-year excessive of 1.52million.
Restaurant, meals chain, and pub job losses
A NUMBER of high-profile restaurant, pub, and meals chains have introduced job cuts following the coronavirus disaster.
- Zizzi proprietor Azzurri Group introduced in July 2020 that it might completely shut 75 branches, placing 1,200 jobs in danger
- Frankie & Benny’s proprietor The Restaurant Group has proposed closing 125 branches, with 3,000 jobs on the road
- Byron Burger is shutting 31 eating places, round half of its UK websites, with 600 jobs in danger
- Bella Italia and Cafe Rouge have introduced the closure of 91 eating places, with 1,900 jobs to go
- Carluccio’s is reducing 1,000 jobs with 40 eating places to close
- Costa Coffee is axing 1,650 jobs – it hasn’t introduced any retailer closures at this stage
- GBK is closing 26 eating places and making 362 employees redundant
- Marston’s pub chain says 2,150 employees are liable to being made redundant or going through considerably fewer hours
- Pizza Express has confirmed it will be closing 73 eating places, placing 1,100 jobs in danger
- Pret a Manger is reducing 2,800 jobs with 30 shops to shut
- Upper Crust plans to make 5,000 out of its 9,000-strong workforce redundant
- Wetherspoons is planning to chop 450 jobs from six pubs, in addition to 130 head workplace roles.
- Whitbread (which owns Brewers Fayre, Premier Inn and Beefeater) is planning to chop 6,000 jobs as resort demand slumps.
- Younger’s is making 500 out of 4,200 employees redundant.
All eating places needed to shut again in March as a result of lockdown with companies solely allowed to stay open for takeaways.
Eating places started reopening their doorways once more from July in England however a number of regional lockdowns since have disrupted service.
England is now working a three-tier coronavirus system, which can see pubs and bars situated in tier three zones having to shut until they serve meals.
Pubs, bars and eating places throughout England are already restricted by a 10pm curfew, with comparable guidelines in place in Northern Eire, Scotland, and Wales the place coronavirus is a devolved situation.
What are my redundancy rights?
BEFORE making you unemployed, your employer ought to nonetheless perform a good redundancy course of.
You might be entitled to be consulted on the redundancy lay-off first and to obtain a statutory redundancy fee, so long as you have been working someplace for not less than two years.
How a lot you are entitled to will depend on your age and size of service, though that is capped at 20 years. You will get:
- Half per week’s pay for every full 12 months you had been below 22,
- One week’s pay for every full 12 months you had been 22 or older, however below 41,
- One and half week’s pay for every full 12 months you had been 41 or older.
Sadly, you will not be entitled to a payout in case you’ve been working on your employer for fewer than two years.
There needs to be a interval of collective session in addition to time for particular person ones in case your employer desires to make 20 or extra staff redundant inside 90 days or one another.
You might be additionally entitled to enchantment the choice by claiming unfair dismissal inside three months of being let go.
Gavin Maher, joint administrator at Deloitte, mentioned: “As with plenty of eating companies, the broader challenges going through ‘bricks and mortar’ operators, mixed with the impact of the lockdown, resulted in a deterioration in monetary efficiency and a fabric funding requirement.
“Now we have been working carefully with the administration workforce below very troublesome market circumstances to try to discover a funding resolution and I’m glad to have the ability to announce the rescue of this well-loved model along with a big proportion of the websites and workforce.
“But it surely’s clearly disappointing that plenty of websites have needed to shut leading to right this moment’s redundancies.
“We wish to thank all of these concerned within the transaction, together with our authorized advisers, DLA Piper, and need the administration workforce, workforce and the brand new house owners, Boparan Restaurant Group, each success in now taking the enterprise ahead.”
It’s the newest enlargement in eating for Boparan, which is owned by “rooster King” Ranjit Boparan, and in addition owns the chains Giraffe and Ed’s Easy Diner.
