Up to 450 jobs are at risk after Jamie Oliver announced plans to close a dozen loss-making Jamie’s Italian restaurants in Britain while seeking rent reductions on another eight.
The chain was founded in 2008 and has 35 branches in Britain. The chef confirmed last night that it would be restructured by way of a company voluntary arrangement, which enables struggling companies to reduce their financial liabilities while staying in business.
Under the terms of the proposed CVA, which is being handled by Alix Partners, Jamie Oliver Restaurant Group will close 12 outlets and is seeking a 30 per cent cut in the rent of eight marginal sites. Creditors have until February 9 to vote on the proposals.
The closures, which include prominent locations in Bluewater, Bath, Bristol and London, are a response to soaring labour and food costs and business rates, while fragile consumer confidence has been exacerbated by massive oversupply. Jon Knight, group chief executive, said it aimed to redeploy as many staff as possible.
Mr Oliver’s overseas restaurants and media businesses are unaffected.