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  • Insolvency review - Week 36

     

    RCM Weekly review - September 2019 - Week 36

     

     This week: Further woes for the high street restaurant trade as Restaurant group considering more than 150 closures and Arcadia report huge loses for year ending September 2018.

    6th September 2019

     Morrisons to close four stores with the loss of up to 400 jobs.

    Arcadia reports huge loses for year ending September 2018

    Arcadia Group has reported a loss of £169.2m for the year to 1st September 2018, this compares to a profit of £49.4m profit a year earlier. Turnover for the group fell by 4.5% to £1.8bn. This is the first time in seven year that the group has reported a loss.

    In June of this year Arcadia successfully passed seven company voluntary arrangements (CVAs), in which they agreed to close 48 of its UK and Irish stores and slash rents across the remainder of its portfolio. Arcadia’s stores include Topshop/Topman, Burton, Dorothy Perkins, Evans, Wallis, Miss Selfridges and Outfit. The US branches of Topshop/Topman were placed into administration as part of this arrangement.


    Read more here:
    https://www.drapersonline.com/news/latest-news/depth-of-arcadia-losses-revealed/7037463.article


    3rd September 2019

     Brexit uncertainty has caused the UK to fall to the bottom of the G7 GDP growth league.

    Further woes for the high street restaurant trade as Restaurant group considering more than 150 closures.

    The owner of restaurant brands Wagamama, Frankie & Benny’s, Garfunkel’s and Chiquito are planning to close around 150 locations in an attempt to turnaround their fortunes after reporting a £88m pre-tax loss for the first half of 2019.

    Restaurant Group has said they are planning to close around half of its 240 Frankie & Benny’s and 80 Chiquito restaurants. Earlier in the year a spokesman had commented that many of these sites had been identified as structurally unattractive being mostly situated in retail sites, leisure parks and next to cinemas, and footfall is massively declining in those areas. The closures will be gradual as leases allow. The company’s leases are on average six years away from a potential exit date.

    Debbie Hewitt MBE, Non-executive Chairman, commented: "We are mindful of the headwinds in the casual dining sector and the meaningful uncertainties created by the potential of a 'no-deal Brexit' and are planning with this in mind. However, our business is now better diversified and purposefully positioned to benefit from multiple opportunities for growth.”

    Despite the issues with the Frankie & Benny’s and Chiquito brands, the company was upbeat about future commenting, "We have traded well throughout the first half of the year, delivering 4% like-for-like sales growth, driven by the market outperformance of Wagamama and our Concessions and Pubs businesses. Our Leisure business delivered a marginal decline in like-for-like sales despite benefitting from the weaker comparatives following last year's extreme weather and football World Cup. We continue to focus on improving our brand offerings and delivering the best possible experience to our customers whilst optimising our Leisure business to enhance the overall Group performance.

    Read more here:
    https://www.bbc.co.uk/news/business-49562138


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    Award Seal Richard Cacho

    Richard Cacho Awarded No. 1 Insolvency Practitioner in Norfolk

    Richard Cacho award article