Gourmet Burger Kitchen to close 17 restaurants

Creditors have approved Gourmet Burger Kitchen’s plans to close 17 restaurants on Friday.

A fifth of the group’s restaurants will be closed in a dramatic restructuring plan, which will risk 250 jobs.

The managing director of Gourmet Burger Kitchen, Derrian Nadauld, said: “We’d like to thank the landlord community, our trade suppliers and our restaurant teams for their support through a challenging process.”

“With the positive vote on our proposal to restructure our property portfolio, we are now able to execute the final stage of our turnaround plan, which we are confident will position the business for long-term sustainable growth”.

The group is hoping to redeploy staff where it is possible.

The casual dining sector has faced difficulty amid difficult trading conditions. Restaurants that have been affected include Jamie’s Italian and Carluccio’s. 

According to a report from PwC, the UK high street is facing the toughest trading conditions in five years.

Lisa Hooker, who is the consumer markets leader at PwC, said on Friday: “Looking ahead, the turmoil facing the sector is unlikely to abate.”

“Store closures in the second half of the year due to administrations and company voluntary arrangements [a form of insolvency] already announced will further intensify the situation,” she added.

The restaurant chain currently has 80 stores and around 2,000 employees.