Giraffe restaurant in Bury St Edmunds earmarked for closure
PUBLISHED: 12:02 08 March 2019 | UPDATED: 12:09 08 March 2019
Giraffe restaurant in Bury St Edmunds has been earmarked for closure as part of a major business review by its owners.
The restaurant chain, owned by Boparan Restaurant Group (BRG), announced a company voluntary arrangement (CVA) proposal on Monday and 27 outlets are set to close across the UK including some Ed’s Easy Diners – which BRG also owns.
A CVA is a restructuring process which allows a company to get rid of loss making stores and reduce rents to enable it to carry on trading.
Other restaurants earmarked for closure across the UK include Giraffe sites in Aberdeen, Basingstoke, Blackheath, Bluewater, Brighton, Bromley, Castleford, Chelmsford, Eldon Square, Guildford, Holland Park, Lakeside, Manchester Trafford Centre, Norwich, Reading, Walton-on-Thames, Watford and York Monks Cross.
Will Wright, restructuring partner at KPMG and a proposed supervisor of the CVA, said: “This CVA seeks to address the cost of the company’s leasehold obligations across a number of unprofitable sites, and if successful, will put the business on a surer financial footing.
“Importantly, it constitutes one element of a wider financial and operational turnaround plan which, subject to the CVA’s approval, will see an injection of funding into the business from the company’s majority shareholder.”
The creditors will vote on the CVA on March 21.