Franco Manca, the beloved pizza chain, has confirmed it will close one of its Cheltenham restaurants as part of a broader strategy affecting 16 venues nationwide. This move follows the approval of a company voluntary arrangement (CVA) by more than 90% of voting creditors, enabling the parent company, The Fulham Shore, to restructure its operations.
The closures are part of Fulham Shore’s ongoing efforts to stabilize the business amidst financial pressures. Last month, the firm announced plans to shut multiple sites, which will unfortunately result in the loss of around 225 jobs. Prior to these 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 rendering these locations unsustainable. Marcel Khan, CEO of Fulham Shore, expressed gratitude for creditor support and reaffirmed his commitment to strengthening the brand’s customer experience and overall performance.
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In parallel, Fulham Shore’s sister brand, The Real Greek, entered administration last week. It was swiftly acquired by the Karali Group, owners of Cote, who announced the closure of nine of its 28 restaurants as part of the takeover.
Paul Berkovi, managing director of Alvarez & Marsal, highlighted the positive response from creditors, calling the CVA approval an important step for Franco Manca’s financial restructuring and operational transformation in a challenging hospitality sector.
As the company embarks on this restructuring, affected patrons and employees in Cheltenham and beyond will feel the impact of these difficult, but necessary, closures.