Chiquito restaurants go into administration due to 'immediate effect' of Covid-19
THE owners of Chiquito restaurants have announced that the company has fallen into administration.
The Restaurant Group said it would shut the majority of sites – as well as its Food and Fuel pub chain in London.
The company also owns Frankie and Benny’s, Coast To Coast and Wagamama’s, though the future of those businesses remains unclear.
Around 1,500 jobs are likely to be affected, after sales fell by 12.5 per cent over two weeks.
A total of 61 Chiquito sites will remain shut while around 20, which are not part of the business getting ready for an administration, will reopen after the lockdown.
Chiquito sites at Gunwharf Quays and Port Solent have already closed in the past couple of years.
A spokesman said: ‘Covid-19 has had an immediate and significant impact on trading across the group.
‘We have conducted a review of the performance of our business divisions, with a particular focus on the expected future cash generation profile of each of our business units.
'The decisions have been incredibly difficult and we recognise the significant impact on all of our colleagues that are affected – we thank them for their hard work and commitment during these very testing times.’
Pubs and restaurants have faced a tough week, with the government announcing their closure, although takeaway services are allowed to continue.
Marston's, which runs 1,400 pubs across the country, and Mitchells and Butlers, the owner of Toby Carvery and All Bar One, also both warned they were struggling.