Carluccio’s moves closer to administration as economic fallout of coronavirus outbreak begins to bite

Carluccio’s moved a step closer to collapse as the economic fallout of the coronavirus outbreak begins to bite.

The restaurant chain drafted in advisers on Friday as it looked to push the company into administration, a move that would affect around 2,000 staff.

The FRP Advisory, who have been appointed by Caroluccio's, said all options remained open in "the current climate".

All Carluccio's restaurants sites are currently shut due to coronavirus.

Earlier this week, staff from the chain saw their wages for the past month halved as part of cost cutting measures to mitigate the impact of the pandemic.

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Chief executive Mark Jones confirmed he would not receive pay for the month as it sought to preserve cash.

Dave Turnbull, Unite national officer for the hospitality sector, said if Carluccio’s does enter administration, the union would ensure Unite members received unpaid wages, redundancy, notice and holiday pay.

The restaurant chain was founded by Italian chef Antonio Carluccio in 1999, growing into a familiar brand on UK high streets.

Carluccio’s is owned by Dubai-based Landmark Group, which bought the business for £90 million in 2010.

The company closed 34 of its restaurants in 2018 as it underwent a Company’s Voluntary Arrangement (CVA) restructuring deal in a bid to secure its future.