A major restaurant chain is set to close half of its locations across the UK as part of a restructuring plan in another blow to Britain's economy.
Italian chain Gusto currently runs 13 restaurants and employs 400 members of staff, but six of its branches will be closing down in the near future.
It is understood that the business move, which is part of a rescue deal, will see 190 employees lose their jobs.
While a full list of the restaurants earmarked for closures, financial advisors Interpath admitted that it will likely be "economically unviable" sites in suburban areas.
A major restaurant chain is closing down
|GETTY / PA
Here is a full list of the Gustos restaurants that are at risk of closure:
- Alderley Edge
- Birmingham
- Cheadle Hulme
- Cookridge
- Edinburgh
- Heswall
- Knutsford
- Leeds City Centre
- Liverpool
- Manchester
- Newcastle
- Nottingham
- Oxford.
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Restaurant chains are struggling to navigate the post-Covid economy
| PAPaul Moran, the chief executive of Gusto Restaurants, shared: "We are profoundly sorry to see six of our restaurants close and are tremendously grateful for the support of our staff and our loyal customers at these locations over the years."
Earlier this morning, the restaurant chain published a Notification of Intent to appoint an administrator.
As part of the rescue deal, private equity investment company Cherry Equity Partners is purchasing the chain.
It is understood that this move is part of a "pre-pack administration", when a business flogs its assets before appointing administrators.
Moran added: "This investment marks an important step forward for Gusto, ensuring the future of the business and putting in place a strong and stable platform upon which we can start to grow the business again."
Ed Standring, the CEO and operating partner of Cherry Equity Partners, said: "This investment marks our third acquisition in six months, and underscores our deep commitment to the UK hospitality sector."
LATEST DEVELOPMENTS:
Britain's high streets have been hit by a wave of store and restaurant chain closures | PALast November, Gusto closed its Didsbury branch after "an approach from a well-known high street retailer".
Based on data from PwC, Britain saw a stabilisation in net store closures last year with the lowest number of locations shutting down in a decade, apart from 2022.
In 2024, Britain saw 12,804 chain and multiple retailer stores closed from year, which was a slight decrease from the previous year.