The Real Greek restaurant chain has been partially rescued from administration after the Karali Group purchased 19 of its 28 outlets. However, the company will still close nine locations and eliminate over 150 jobs.
As of early Tuesday, reports indicate that 358 out of 509 jobs will be retained through this rescue deal. The closures will affect sites in London, Bristol, and Scotland.
The Real Greek was founded in London in 1999 and has been a staple of the UK casual dining scene. Financial difficulties led its owners to plan for administration before the recent rescue agreement.
The company reported an operating loss of £3.6 million in its last accounts. This financial strain reflects broader challenges within the hospitality sector, including rising costs and inflation.
Details of the restructuring:
- Nine locations are set to close as part of a wider restructuring program across Fulham Shore’s portfolio.
- The central kitchen operation will also be shut down.
- Fulham Shore, which owns The Real Greek, also manages the Franco Manca chain.
Marcel Khan from Karali Group stated, “The transaction will ensure that the business is placed on a more sustainable footing for the future.” This reflects an effort to stabilize operations amidst ongoing challenges.
Toridoll, the parent company of Fulham Shore, noted that high inflation rates driven by energy and food prices have created a difficult operating environment for the hospitality industry. They emphasized that this situation was more challenging than initially anticipated.
Paul Berkovi remarked on the collaboration with The Real Greek’s management team to secure a future for a brand enjoyed by diners for many years. Still, many employees face uncertainty as they brace for job losses.
The next steps for affected employees remain unclear as support measures are planned. The economic impact on dining continues to evolve as businesses adapt to these pressing conditions.