Carluccio's approves rescue plan with 30 restaurants under threat

Carluccio’s is to enter in to a Company Voluntary Agreement (CVA) which could see almost a third of its restaurants close.

Over 90% of the Italian chain’s creditors voted to approve the plan today (31 May).

It comes after pre-tax profits at the group fell 81% to £982,000 in the year to September 2016, despite revenues rising 2.7%.

Up to 30 of Carluccio's 103 UK sites will be impacted, though the company says it will make further announcements on closures “when practicable”.

The vote will see Carluccio’s owner Landmark, which bought the chain for £90m in 2010, invest £10m in refurbishing its remaining restaurants.

“This vote was vital to protect our strong core business and the Carluccio’s brand,” says Carluccio's CEO Mark Jones, who joined the business in January.

“The positive outcome enables us to kick-start an extensive programme of reinvigoration across our estate - with the aim of elevating the guest experience and underpinned by our brand ethos of minimum of fuss, maximum of flavour, which was so passionately championed by our founder Antonio Carluccio.”

The Italian chain launched in the 1990’s and has sought to revamp its format over the past two years, launching the now-closed grab-and-go Via Carluccio’s site and introducing pizza to its menu for the first time.

It has opened three Marriott hotel restaurants since 2016, which Jones says are “particularly suited” to the brand.

High street chains Jamie's Italian, Prezzo and Byron have all closed restaurants this year using CVA's amidst tough trading conditions on the high street.