Franco Manca has announced the closure of 16 restaurants throughout the United Kingdom, a decision that will put over 200 jobs at risk. The closures were approved through a Company Voluntary Arrangement (CVA) and are attributed to financial pressures stemming from high taxes and insufficient business rates relief.

Financial Difficulties and the CVA

The popular sourdough pizza chain revealed the complete list of affected locations following an initial announcement last month. The CVA, supported by over 90 percent of creditors, is intended to facilitate debt repayment and restructure the business for long-term stability.

London Closures and Historical Significance

A significant portion of the closures will occur in London, with eight branches ceasing operations. This includes the original Franco Manca restaurant in Brixton, a pizzeria site since 1986 and acquired by the chain’s founders in 2008. Other London locations affected are in Battersea, Broadway Market, Chiswick, Kilburn, New Oxford Street, Stoke Newington, and Tottenham Court Road.

Full List of Closing Restaurants

  • Bishop's Stortford
  • Bromley
  • Cheltenham
  • Didsbury
  • Glasgow
  • Hove
  • Lincoln
  • Plymouth

    • Broader Industry Challenges and Parent Company Issues

    Beyond London, restaurants in Bishop’s Stortford, Bromley, Cheltenham, Didsbury, Glasgow, Hove, Lincoln, and Plymouth will also be closing. The closures represent a contraction of the brand and highlight the challenges facing the hospitality sector due to the current economic climate.

    This news follows the recent administration of Fulham Shore’s sister brand, The Real Greek, although it was quickly acquired by the Cote owner Karali Group, with nine of its restaurants also closing.

    Statements from Fulham Shore Leadership

    Marcel Khan, Chief Executive of Fulham Shore, expressed gratitude for creditor support and reaffirmed confidence in the Franco Manca brand, citing its strong heritage and loyal customer base. He stated the CVA will allow the business to build a firm financial foundation.

    Paul Berkovi, Managing Director of Alvarez & Marsal, noted the constructive engagement among stakeholders and the importance of the CVA in enabling Franco Manca’s financial restructuring and operational transformation.

    Company History and Contributing Factors

    Franco Manca began with the acquisition of Franco’s in Brixton by Giuseppe Mascoli and Bridget Hugo in 2008, and has been under the ownership of The Fulham Shore since 2015, which was later acquired by Toridoll Holdings. Increased national insurance, minimum wage, and the UK’s 20 percent VAT rate are contributing factors to the current difficulties.

    Fulham Shore’s revenue experienced a 5.4 percent year-on-year decline, with both sales and profits described as ‘bad’ in recent filings.