Background

Carluccio’s operated 72 Italian-themed restaurants in the UK and Ireland, employing over 2,000 people. The company experienced a dramatic sales decline caused by the COVID-19 outbreak and subsequent government restrictions, with its entire restaurant portfolio forced to close, leaving the company’s online deli as the only limited revenue stream. Without support from its parent company, the business faced a severe cashflow problem and was unable to source additional equity or debt.

Action

FRP was appointed Administrators of Carluccio’s and began working to stabilise and continue to trade the business via the online deli, while also marketing the company’s business and assets for sale. As part of the stabilisation process, we were the first firm to take advantage of the Government’s employee furlough scheme in Administration. A key part of the administration strategy involved negotiating with all of the company’s landlords to secure a financial runway to achieve a sale.

Outcome

Despite the continuing challenging trading conditions during the coronavirus lockdown, FRP was able to secure a trade sale of 31 of Carluccio’s restaurant sites – saving 872 jobs in the process.

“For what has been a particularly challenging period for everyone at Carluccio’s and much of the rest of our industry, we’re grateful for the support and guidance provided by the team at FRP which has worked hard to secure the future of the business.” Mark Jones, Chief Executive, Carluccio’s