Carluccio’s restaurant chain has fallen into administration - putting 2,000 jobs in jeopardy

Monday, 30th March 2020, 3:39 pm
Updated Monday, 30th March 2020, 3:44 pm
Carluccio’s restaurant chain has gone into administration (Photo: Shutterstock)

Carluccio’s restaurant chain has gone into administration after struggling financially amid the coronavirus outbreak.

The Italian food chain confirmed that the future of its 71 locations was now in jeopardy, putting 2,000 workers at risk of losing their jobs.

‘Unprecedented times’

Carluccio’s appointed advisory firm FRP as its administrators, who are “urgently looking at options” for the future of the company.

The majority of the company’s 2,000 employees will be paid through the government’s emergency Coronavirus Job Retention Scheme while options for the future of the business are explored. This means staff will be paid up to 80 per cent of their average salary.

Geoff Rowley, joint administrator and partner at FRP, said, “We are operating in unprecedented times and the issues currently facing the hospitality sector following the onset of Covid-19 are well documented.

“In the absence of being able to continue to trade Carluccio's, in the short term, we are urgently focused on the options available to preserve the future of the business and protect its employees.

“We welcome the latest update on the Coronavirus Job Retention Scheme and look forward to working with HMRC to access the support it provides for companies in administration and their employees.

“As this fast-moving situation progresses we will remain in regular communication with all employees and key stakeholders, and will provide a further update in due course.”

Carluccio's Ireland operation and its franchise business in the Middle East is unaffected by the administration.

The restaurant chain’s collapse came just minutes after rent-to-own retailer BrightHouse also fell into administration.