2,000 jobs at risk after Carluccio’s falls into administration

Carluccio’s has appointed FRP Advisory as administrators (Carluccio’s/PA)

Carluccio’s has collapsed into administration, casting a shadow over the future of its 71 UK restaurants and 2,000 employees.

The dining chain, which was founded by Antonio Carluccio in 1991, confirmed it has hired advisory firm FRP to oversee its administration.

It said its directors made the decision “after a sustained period of challenging trading conditions, which have been exacerbated by Covid-19 and the broader issues currently facing the UK’s retail and hospitality sector”.

Carluccio’s faced “significant cashflow pressures” on the back of the pandemic and was therefore unable to meet its financial obligations.

The administrators said they are speaking to “interested parties regarding the sale of all or parts of the business”.

The administrators said they also plan to furlough the majority of the company’s 2,000 employees whilst they assess all available options.

Antonio Carluccio at the launch party for Carluccio’s restaurant in Bond Street, London (Michael Crabtree/PA)

Last week, staff from the chain saw their wages for the past month slashed in half as part of cost-cutting measures to mitigate the impact of the pandemic.

Chief executive Mark Jones confirmed he would not receive pay for the month as it sought to preserve cash.

Geoff Rowley, joint administrator and partner at FRP, said: “We are operating in unprecedented times and the issues currently facing the hospitality sector following the onset of Covid-19 are well documented.

“In the absence of being able to continue to trade Carluccio’s, in the short term, we are urgently focused on the options available to preserve the future of the business and protect its employees.

“We welcome the latest update on the Coronavirus Job Retention Scheme and look forward to working with HMRC to access the support it provides for companies in administration and their employees.

“As this fast-moving situation progresses we will remain in regular communication with all employees and key stakeholders, and will provide a further update in due course.”

The business’s Ireland operation and its franchise business in the Middle East is unaffected by the administration, it said.