The Boparan Restaurant Group (BRG) has acquired UK burger chain Gourmet Burger Kitchen (GBK) in a rescue deal.
The deal will avoid the closure of 35 restaurants and 669 job losses, according to administrator Deloitte.
Go deeper with GlobalData
However, as part of a pre-pack deal funded by BRG, 26 GBK sites will be closed. It will lead to at least 360 job cuts.
GBK entered administration in accordance with the insolvency legislation in the UK.
Administrators were appointed and took control of GBK and its UK subsidiaries, including Gourmet Burger Kitchen.
Deloitte joint administrator Gavin Maher 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.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“We have been working closely with the management team under very difficult market conditions to try and find a funding solution.
“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.”
GBK was acquired by South Africa’s Famous Brands in 2016.
Earlier this year, BRG acquired 30 UK locations from Anglo-Italian restaurant chain Carluccio, which was on verge of collapse.
BRG owns brands such as Giraffe and Ed’s Easy Diner.
