Coronavirus: 2,000 jobs at risk as Carluccio's faces collapse

Related Topics
Image source, Carluccio

Italian restaurant chain Carluccio's is facing collapse, after warning it was facing permanent branch closures due to the coronavirus.

It is currently working with administrators in a move that could threaten more than 2,000 jobs.

Before the outbreak it was hit by the crunch in the casual dining sector and recently urged the state to step in.

Administrator FRP said it was working with Carluccio's to "consider all options" for the restaurant's future.

Restrictions aimed at curbing the coronavirus pandemic have recently forced all cafes and restaurants to close.

Image caption,
Antonio Carluccio founded the chain in 1999

Before the government's pledge to pay 80% of those workers' salaries, Carluccio's Chief Executive Mark Jones told the BBC the firm "was days away from large-scale closures" without state aid.

"FRP is working with the directors of Carluccio's to consider all options for the company in the current climate," a spokesperson for the administrator said.

Carluccio's has faced some difficult times in recent years, closing a third of its restaurants in 2018 as part of a Company Voluntary Arrangement (CVA) rescue plan.

Like many in the casual dining sector, it has felt the brunt of a fall in consumer spending, combined with higher business rates, and increases in the National Living Wage.

Prezzo and Byron also used CVAs to close restaurants while Jamie's Italian went into administration last year.

The chain was founded more than 20 years ago by celebrity chef and restaurateur Antonio Carluccio, who died aged 80 in 2017.

More on this story