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Last remaining Gourmet Burger Kitchen branch in Yorkshire to close

Written by on 14/10/2020

Gourmet Burger Kitchen is set to close its last remaining branch in Yorkshire.

Despite having been sold after collapsing into administration at the height of the pandemic, 26 restaurants up and down the country will have to shut up shop and 362 jobs will be axed.

Among the restaurants to go is the company’s branch in Sheffield.

The company has been saved from administration by the Boparan Restaurant Group (BRG), which also snapped Carluccio’s out of insolvency in May.

Gourmet Burger Kitchen underwent a major restructuring process in 2018 which saw dozens of restaurants close.

Gourmet Burger Kitchen said it had started to see improvements in trading last year. However, the company – which had been owned by South African group Famous Brands – said it slid into administration after the virus impacted upon its liquidity and potential to be sold as a solvent business.

It has now been sold in a pre-pack administration deal after working with insolvency specialists at Deloitte, the Mirror reports.

It said the move will save 35 sites and 669 jobs from its original network of 61 restaurants and 1,031 employees.

Gavin Maher, joint administrator at Deloitte, said: “As with a number of dining businesses, the broader challenges facing ‘bricks and mortar’ operators, combined with the effect of the lockdown, resulted in a deterioration in financial performance and a material funding requirement.

“We have been working closely with the management team under very difficult market conditions to try and find a funding solution and 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.

“We would like to thank all of those involved in the transaction, including our legal advisers, DLA Piper, and wish the management team, workforce and the new owners, Boparan Restaurant Group, every success in now taking the business forward.”

Satnam Leihal, managing director of BRG added: ” We welcome the GBK team to BRG.

“This latest acquisition is in line with our strategy to grow our restaurant group with quality brands. Whilst it is an extremely challenging time for the sector, we believe quality hospitality businesses will recover in the long term as people return to eating out.”

It is the latest expansion in dining for Boparan, which is owned by “Chicken King” Ranjit Boparan and also owns the chains Giraffe and Ed’s Easy Diner.

The announcement comes after pub chain Greene King announced plans to close 79 outlets due to new lockdown restrictions.

Around 800 employees have been placed on consultation amid new three-tier restrictions that will force hundreds of pubs to close in areas where transmission rates are highest.

All the GBK restaurants set to close

  • Angel
  • Aylesbury
  • Baker Street
  • Berner Street
  • Brunswick
  • Canterbury
  • Cardiff Library
  • Chichester
  • Clink Street
  • Covent Garden
  • Edinburgh
  • Glasgow

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Full list of restaurants staying open

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