A major UK restaurant chain has announced the closure of nine branches as part of a rescue package to save the business. The Real Greek, which operates 28 sites across the country, has become the latest hospitality firm to enter administration. There is one branch in the West Midlands, located at Touchwood in Solihull.
Rescue Deal and Closures
The Real Greek has confirmed that the nine closures, with specific locations yet to be revealed, will lead to 151 redundancies. The hospitality chain entered administration after its parent company, Fulham Shore, faced financial difficulties. On Friday, Karali Group, which also owns the Cote restaurant chain, announced it had secured a rescue deal for the business. However, Karali confirmed it would only preserve 19 of The Real Greek's 28 restaurants nationwide. It has not disclosed which sites will close and which will continue trading.
The new owner stated that the decision will also result in 151 job losses, though it will safeguard the employment of 358 staff members. Industry publication Propel reported that The Real Greek's central kitchen will also cease operations.
Background and Statements
Last month, Fulham Shore revealed it was examining future options for the Greek chain. This announcement came as it initiated a company voluntary arrangement (CVA) restructuring process for sister restaurant brand Franco Manca, which will result in the closure of 16 venues and the loss of 225 jobs.
Marcel Khan, chief executive of Fulham Shore, commented: "The transaction will ensure that the business is placed on a more sustainable footing for the future, while allowing The Fulham Shore to focus its energy and investment behind Franco Manca and its significant growth potential. We're pleased to be handing it over to Karali with real momentum. We will now do everything we can to support colleagues affected by this process and believe that both the brand and its teams will be in very good hands as the business moves into its next chapter."
Toridoll, the Japanese restaurant group that owned Fulham Shore, stated earlier on Friday that The Real Greek had been more severely affected by current challenging trading conditions. The company explained: "In recent years, high levels of inflation in the UK, driven by rising energy and food prices together with increase in labour costs resulting from rises in the minimum wage, have created a more challenging operating environment for the hospitality industry than initially anticipated. The deterioration in the economic environment has had a more significant impact on the Greek restaurant brand The Real Greek than on the Franco Manca business." Fulham Shore was acquired by Toridoll, supported by investment firm Capdesia, in 2023 for £93.4 million.
Paul Berkovi, managing director at administrators Alvarez and Marsal, commented: "We have worked closely with The Real Greek's management team and are pleased to have completed a transaction that secures a future for a restaurant group enjoyed by diners over many years. Our immediate focus as administrators will be to provide a smooth transition for the business and to support employees affected by site closures. We are grateful to all stakeholders for their constructive engagement throughout this process."
