Another blow for the British high street as a major restaurant group has fallen into administration.
A rescue deal will keep 19 locations open, but hundreds of workers face uncertainty as the business restructures.
The Real Greek restaurant chain has collapsed into administration, with Karali Group stepping in to rescue part of the business.
The deal, confirmed on Friday, will preserve 19 of the chain's 28 UK locations, whilst nine sites face permanent closure.
Some 151 workers will lose their jobs as a result of the restructuring, though 358 positions have been safeguarded under the new ownership.
Karali Group, which also owns the Cote restaurant brand, has not revealed which specific locations will shut their doors.
According to industry publication Propel, the chain's central kitchen will also cease operations as part of the changes.
Japanese restaurant group Toridoll, which owned The Real Greek's parent company Fulham Shore, pointed to tough economic conditions as the cause of the chain's struggles.
Many jobs are at risk
| GETTYThe company explained that Britain has experienced significant inflation in recent years, with energy and food prices climbing sharply alongside growing labour expenses linked to minimum wage increases.
These factors combined to make running hospitality businesses far harder than expected, Toridoll stated.
The firm added that the worsening economic climate hit The Real Greek more severely than its sister brand Franco Manca.
Fulham Shore was acquired by Toridoll, supported by investment firm Capdesia, in 2023 through a £93.4million deal.
The food they serve comes from Greece & the eastern Mediterranean
| GETTY / PAFulham Shore had announced last month that it was examining options for The Real Greek's future.
This review came as the company simultaneously launched a company voluntary arrangement restructuring process for Franco Manca, its other restaurant brand.
That separate process will result in 16 Franco Manca venues closing permanently, with 225 staff members losing their positions.
The parallel difficulties facing both chains highlight the broader pressures confronting the UK hospitality sector.
Around 358 positions have been safeguarded under the new ownership
| GETTYToridoll acquired Fulham Shore two years ago with financial backing from Capdesia, paying £93.4million for the business that operated both Greek and pizza restaurant brands across the country.
Marcel Khan, Fulham Shore's chief executive, said: "The transaction will ensure that the business is placed on a more sustainable footing for the future, while allowing The Fulham Shore to focus its energy and investment behind Franco Manca and its significant growth potential."
Khan added that the company was "pleased to be handing it over to Karali with real momentum" and pledged to support affected staff through the transition.
Paul Berkovi, managing director at administrators Alvarez & Marsal, said: "We have worked closely with The Real Greek's management team and are pleased to have completed a transaction that secures a future for a restaurant group enjoyed by diners over many years."