UK Italian restaurant chain Carluccio’s enters administration putting 2,000 jobs at risk

Carluccio’s – Out of the frying pan, and into the Fire!  News broke at lunchtime, that the famed Italian restaurant chain Carluccio’s has gone into administration.

THIS is the latest blow for the UK restaurant industry, due to Covid-19, and it will effect more than 73 restaurant outlets nationwide. The news means that more than 2,000 workers have now lost their jobs, adding further stress to the current strain on the economy in general.

Just days ago, the firm said in a statement: “FRP is working with the directors of Carluccio’s to consider all options for the company in the current climate.” However, as of just after lunchtime today, it was announced that the popular Italian eatery chain, with outlets across the UK and Ireland, has gone into administration.

In 2018, Carluccio’s landlords backed a restructuring plan in the form of a company voluntary arrangement (CVA), an insolvency procedure that allowed it to shutter loss-making sites, and led to the closure of about 30 of its restaurants. On Thursday, Carluccio’s staff were told they would only receive 50 per cent of their wages due for the month.

The Unite union accused the chain of ‘wage theft’ and threatened legal action. Carluccio’s is controlled by the Landmark Group, the Dubai-based retail and hospitality conglomerate. At the time of the CVA, it promised to finance a multimillion-pound refurbishment for the restaurants unaffected by the CVA.