Famous Brands's UK fast food chain sold in pre-pack deal
Famous Brands's UK burger chain Gourmet Burger Kitchen has been sold to Boparan Restaurant Group.
Moneyweb reported on 14 October that Famous Brands announced its Gourmet Burger Kitchen (GBK) restaurant chain had entered administration. The Boparan Restaurant Group (BRG) has taken over British-based chain GBK in a rescue deal.
Famous Brands, which owns the Mugg and Bean, Wimpy and Steers chains, is seeing evidence of the effects of the Covid-19 pandemic. According to administrator Deloitte the rescue deal will save 35 restaurants and 669 jobs, while more than 360 people will be made redundant and 26 locations closed.
“We have been working closely with the management team under very difficult market conditions to try and find a funding solution,” said Gavin Maher, Deloitte’s joint administrator. “I am glad to be able to announce the rescue of this well-loved brand, together with a large proportion of the sites and workforce. However, it’s clearly disappointing that a number of sites have had to close, resulting in today’s redundancies.”
Famous Brands bought GBK in 2016, but reaping the benefits has taken longer than anticipated. Increased pressure on consumer spending, high property rates, rising costs and an extremely competitive market have all resulted in lower earnings.
In a September trading statement Famous Brands reported that UK sales for the 26 weeks to August 27 were down a little more than 66% in sterling terms.