‘Chicken king’ Boparan to close a third of Giraffe and Ed’s Diner restaurants
Giraffe and Ed’s Diner have become the latest casualties in the struggling casual dining sector after the restaurant chains’ owner said it will close a third of their branches.
The Boparan Restaurant Group (BRG), which is owned by ‘chicken king’ Ranjit Singh Boparan, is widely reported to have entered a company voluntary arrangement (CVA) that will close down 27 of its 87 restaurants.
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The company said while like-for-like sales had improved since BRG bought the chains, some branches remained unprofitable. The proposed closures put hundreds of jobs at risk.
BRG chief executive Tom Crowley said: "We have been examining options for the two brands for some time and the CVA is the only option to protect the company.
“The combination of increasing costs and over-supply of restaurants in the sector and a softening of consumer demand have all contributed to the challenges both these brands face.”
BRG acquired Giraffe from Tesco in June 2016, before buying Ed’s Diner out of administration months later for a reported £8.75m.
BRG, which also owns fish and chip chain Harry Ramsden and the upmarket Cinnamon Collection, said the CVA will be overseen by KPMG.
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The restaurant group is the latest high street chain to resort to a CVA in a bid to pay off debts amid tough trading conditions. Byron, Carluccio’s and Prezzo have all used the rescue method to close branches and cut costs.
Boparan has earned the nickname ‘chicken king’ in the West Midlands thanks to his ownership of a string of food manufacturing groups.