Thu, 15 Oct 2020 | BUSINESS SALE
Gourmet Burger Kitchen has been acquired by Boparan Restaurant Group in a rescue deal that will see 26 stores close. 35 sites will continue operating following the acquisition, with around 670 jobs saved, but 362 jobs will be cut at the locations that are to close.
The burger chain was put on the market by former owner Famous Brands after COVID-19 lockdown exacerbated historic difficulties dating back to a 2018 restructuring deal which saw 17 sites close. The company said sales had been improving, but entered administration due to the impact of the virus.
Gourmet Burger King’s administrator Deloitte, announcing the pre-pack sale, said that “COVID-19 and associated lockdown measures have impacted the business’ liquidity, driving the need to find a funding or sale solution.”
Joint administrator Gavin Maher of Deloitte said: "As with a number of dining businesses, the broader challenges facing 'bricks and mortar' operators, combined with the effect of the lockdown, resulted in a deterioration in financial performance and a material funding requirement.”
"We have been working closely with the management team under very difficult market conditions to try and find a funding solution and I am glad to be able to announce the rescue of this well-loved brand together with a large proportion of the sites and workforce. However, it's clearly disappointing that a number of sites have had to close resulting in today's redundancies.”
Boparan Restaurant Group, owned by poultry tycoon Ranjit Boparan, also owns the chains Ed’s Diner and Harry Ramsden’s, along with meat processing firm 2 Sisters group. During the pandemic, the company acquired insolvent Italian restaurant chain Carluccio’s.
The UK’s saturated fast-casual dining market has been particularly hard hit by the impact of COVID-19 on the UK high street, as BSR covered in this exclusive insight, with well-known chains including Byron Burger, Frankie & Benny’s and Pizza Express among those to close outlets.
In its most recent financial accounts, to the year ended February 24 2019, GBK Restaurants Ltd (which trades as Gourmet Burger Kitchen in the UK and Ireland) reported profits of £0.4 million, up from a £2.1 million loss a year earlier, while its net debt decreased to £28.2 million, having stood at £49.2 million a year earlier.
The company’s revenue, however, decreased 7 per cent to £76.1 million from £81.7 million in 2018, driven by site closures and adverse trading conditions following Brexit. Gross profits declined from £32.7 million in 2018 to £28.1 million in 2019.
Find businesses for sale here.
If you are looking for an exit, we can help!
Discover a charming village pub restaurant nestled in the picturesque landscapes of Oxfordshire, offering a unique opportunity to own an establishment rich in character and appeal.
LEASEHOLD
Discover a thriving community pub in a bustling residential suburb of Warwickshire, ideal for those looking to make a mark in the hospitality industry.
LEASEHOLD
Charming riverside pub restaurant in a popular hamlet, perfectly situated near leisure attractions, camping, caravan parks, and waterside activities in Nottinghamshire.
11
|
Jul
|
Holiday letting agency acquires Cornish self-catering holiday specialist | BUSINESS SALE
Travel Chapter, a leading UK holiday letting agency, has ann...
11
|
Jul
|
Power services firm set to be acquired by US energy resilience group | BUSINESS SALE
The Wilmott Group Limited, a power services group with opera...
11
|
Jul
|
Dunfermline vehicle manufacturing services firm enters administration | ADMINISTRATION
A specialist manufacturing business based in Dunfermline has...
18
|
Dec
|
Titan strengthens offering with acquisition of wealth management peer | BUSINESS SALE
Private equity backed Titan Wealth has bought UK peer, Indep...
01
|
Dec
|
Arcadia collapses into administration | ADMINISTRATION
Sir Philip Green’s Arcadia, the group behind retailers...
23
|
Sep
|
Cartwright Group enters administration, but fleet and rental arms are sold | ADMINISTRATION
Commercial trailer manufacturer and rentals firm Cartwright ...
Business Sale Report is the complete resource for finding genuine acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.