Franco Manca to Close 16 Branches After Creditors Approve Restructuring Plan

Sourdough pizza chain Franco Manca is set to close 16 of its branches after creditors approved a company voluntary arrangement (CVA) restructuring plan. The move will impact approximately 225 jobs across the affected sites.

Restructuring Details

The brand's parent company, The Fulham Shore, had announced plans last month to shutter the venues as part of the CVA process. Prior to the closures, Franco Manca operated 70 restaurants across the UK. The company cited "disproportionately high" UK taxes and the absence of business rates relief for restaurants as key factors that made the affected branches "no longer sustainable."

The CVA proposal received support from more than 90% of voting creditors, allowing the restructuring to proceed. This approval is a critical step for the company to address its financial challenges.

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Impact on Sister Brand

Last week, Fulham Shore placed its sister brand, The Real Greek, into administration. The Greek restaurant chain was immediately acquired by Karali Group, owner of Cote, but nine of its 28 locations were closed as part of the deal.

Executive Comments

Marcel Khan, chief executive of Fulham Shore, expressed gratitude for creditor support, stating: "Franco Manca is a fantastic brand with a strong heritage and loyal customer base. With this agreement in place, we will put the business back on a firm footing and press ahead with strengthening our customer offer and performance."

Paul Berkovi, managing director of Alvarez & Marsal, added: "Today's vote saw a significant majority of the company's creditors support the CVA, reflecting constructive engagement across stakeholders. Against a challenging backdrop for the sector, this is an important step for Franco Manca, enabling the business to complete its financial restructuring and secure the platform for its operational transformation."