Boparan Restaurant Group (BPG) is to close 27 Giraffe and Ed’s Easy Diner restaurants after creditors of the brands’ operator Giraffe Concepts approved a Company Voluntary Arrangement (CVA).
BPG will reduce the number of Giraffe and Ed’s Easy Diner restaurants by nearly 40% from 70 sites, as well as requesting rent reductions on another 13 sites.
The move comes after BPG appointed auditors KPMG earlier this year to look at options for Giraffe and Ed’s Easy Diner. The company has blamed increasing costs and over-supply of restaurants, as well as falling consumer demand for the brands’ problems.
BPG bought Giraffe from supermarket giant Tesco in June 2016, before acquiring part of the struggling Ed’s Easy Diner business. It took on 33 restaurants, leaving another 26 in administration. Both brands have a retail partnership with Tesco.
Will Wright, restructuring partner at KPMG said the CVA would address the cost of the company’s leasehold obligations across a number of unprofitable sites would put the business on a “surer financial footing”.
Following the CVA’s approval, which required 75% of creditors to vote in favour, BPG is expected to inject more funding into the business.
BPG also owns Harry Ramsden fish and chip shops and Cinnamon Collection, which are unaffected by the CVA.