The Real Greek, a prominent UK restaurant chain operating 28 outlets nationwide, has announced plans to close nine stores as part of a rescue deal following its entry into administration. The move will result in 151 job losses, though 358 employees will retain their positions under new ownership.
Rescue Deal and Store Closures
Karali Group, which also owns the Cote restaurant chain, confirmed on Friday that it has struck a deal to save the business after Japanese parent company Toridoll placed The Real Greek's previous owner, Fulham Shore, into administration. However, Karali will only retain 19 of the 28 locations, leaving nine to close. The specific sites affected have not yet been disclosed.
The Real Greek operates eight London outlets: Bankside, Marylebone, Soho, Spitalfields, St Martin's Lane, St Paul's, Strand, and Tower Bridge. Industry publication Propel reported that the chain's central kitchen will also shut down.
Impact on Staff
The restructuring will lead to 151 redundancies, while 358 workers will be transferred to Karali Group. Marcel Khan, chief executive of Fulham Shore, stated: "The transaction will ensure that the business is placed on a more sustainable footing for the future, while allowing Fulham Shore to focus its energy and investment behind Franco Manca and its significant growth potential. We will now do everything we can to support colleagues affected by this process."
Challenging Trading Conditions
Toridoll attributed the downturn to adverse economic conditions. In a statement, the company said: "In recent years, high levels of inflation in the UK, driven by rising energy and food prices together with increases in labour costs resulting from rises in the minimum wage, have created a more challenging operating environment for the hospitality industry than initially anticipated." The company noted that The Real Greek suffered more severely than its sister brand Franco Manca, which is also undergoing a Company Voluntary Arrangement (CVA) restructuring that will see 16 venues close and 225 jobs lost.
Fulham Shore was acquired by Toridoll with backing from investment firm Capdesia in 2023 for £93.4 million.
Administrator's Role
Paul Berkovi, managing director at administrators Alvarez & Marsal, commented: "We have worked closely with The Real Greek's management team and are pleased to have completed a transaction that secures a future for a restaurant group enjoyed by diners over many years. Our immediate focus as administrators will be to provide a smooth transition for the business and to support employees affected by site closures."
The Real Greek's closure plan reflects ongoing struggles in the UK hospitality sector, which has been battered by rising costs and reduced consumer spending.
