Corporate: Little Chef to close 67 restaurants and slash 600 jobs 11 January 2012

'aggressive' restructuring underway at Little Chef ?

The chain insisted the sites earmarked for closure had been ‘trading unprofitably for a number of years’ due to ‘economic and locational’ factors.

In 2007 the restaurant fell into administration but was rescued by turnaround group RCapital, saving 193 of its 235 restaurants.

And Little Chef chairman, Graham Sims, said: “When we acquired Little Chef four years ago we inherited a number of sites with leases that were uncompetitive.

“Despite very hard work from some very committed colleagues we have been unable to lift the performances of these sites to a level where they are viable.

“Consequently, following a thorough review in which we considered all the options it is with regret that we have had to close a number of sites.

“I know this will be tough and an uncertain time for many people in our team.”

Little Chef insisted its strategic plan remains focused on expanding the business and opening new sites over the coming years and added the remaining sites are still profitable.

In 2008 celebrity chef Heston Blumenthal tried to revamp the ailing chain’s fortunes for a Channel Four show.

However, his new-look menu is reportedly on offer in only 10 branches across the country.

But Little Chef insisted it will concentrate its efforts on the ‘New Concept’ – largely the Blumenthal-inspired update of its restaurant menu.

Following the store closures and job losses the expected workforce will number about 1500.

By Andy Pearce

 

 

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