Franco Manca, a well-known pizza chain, has announced the closure of 16 of its restaurants across the UK, including its popular Cheltenham location. The decision comes as part of a company voluntary arrangement (CVA) approved by more than 90% of its creditors, following financial difficulties exacerbated by high UK taxes and insufficient business rates relief for the hospitality sector.
The closures are part of a larger restructuring plan initiated by Franco Manca’s parent company, The Fulham Shore, which aims to stabilize the business after challenging conditions. This move will unfortunately result in approximately 225 job losses nationwide. Prior to these closures, Franco Manca operated 70 venues across the country.
Last month, alongside Franco Manca’s plans, The Fulham Shore also placed its sister brand, The Real Greek, into administration. The Real Greek was swiftly acquired by Karali Group, the owners of Cote, but nine of its 28 restaurants will close as part of that process.
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Marcel Khan, Chief Executive of Fulham Shore, emphasized the brand’s strong heritage and customer loyalty. “We are grateful for the support shown by our creditors today. With this agreement, we can reinforce our position and focus on enhancing the customer experience and operational performance.”
Paul Berkovi, Managing Director of Alvarez & Marsal, added: “The overwhelming creditor support reflects constructive collaboration during a tough period for the sector. This financial restructuring is a crucial step for Franco Manca, allowing it to secure a solid foundation for future growth and transformation.”
The closures reflect wider challenges in the UK hospitality industry, highlighting the ongoing need for support and strategic adaptation.