Casual Dining Group (CDG), which operates a range of mid-market restaurant brands including Las Iguanas, Bella Italia and Café Rouge, has collapsed into administration, with the immediate loss of 1,900 jobs
Clare Kennedy, Peter Saville, Daniel Imison and Catherine Williamson of Alix Partners have been appointed as joint administrators to the company.
CDG said in what it called ‘today’s extreme operating environment’ it was in the best interests of all stakeholders for the group to enter administration, in order to conclude negotiations with landlords regarding the estate.
James Spragg, CEO of Casual Dining Group, said: ‘After reviewing all our options with advisors, it became clear that we needed to take this action in order to protect the business and secure the best possible future for Casual Dining Group as we look to conclude a potential sale.’
CDG said it had received multiple offers for the business, and the administrators will now seek to progress these.
However, all offers envisage a reduced restaurant estate, and as a result the administrators have taken the decision to permanently close 91 of the group’s250 restaurants with immediate effect. This affects 1,909 employees from the current staff base of 5,959.
Clare Kennedy, director at Alix Partners and joint administrator, said: ‘We appreciate that this is an extremely difficult time for all those associated with Casual Dining Group.
‘Our immediate priorities are to assist those whose employment has been affected by today’s announcement and to secure a sale for the group in order to protect jobs and provide the group’s much-loved brands with a sustainable platform for the future.’
