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International restaurant chain Gourmet Burger Kitchen (GBK) — which runs over 60 outlets in the UK and five in Ireland — has been acquired from its South African owner in a 'pre-pack' rescue deal.

The UK-based Boparan Restaurant Group (BRG) has taken over GBK, saying the deal will save 35 restaurants and 669 jobs. However, more than 360 people will be made redundant with 26 outlets due to close.

South Africa’s Famous Brands said GBK had entered administration after becoming the latest victim of brutal trading conditions in the face of Covid-19.

International restaurant chain Gourmet Burger Kitchen (GBK) — which runs over 60 outlets in the UK and five in Ireland — has been acquired from its South African owner in a 'pre-pack' rescue deal.

The UK-based Boparan Restaurant Group (BRG) has taken over GBK, saying the deal will save 35 restaurants and 669 jobs. However, more than 360 people will be made redundant with 26 outlets due to close.

South Africa’s Famous Brands said GBK had entered administration after becoming the latest victim of brutal trading conditions in the face of Covid-19.

 

Famous Brands bought GBK in 2016 but its contribution to group profitability has taken longer than the company had expected, hampered by pressure on consumer spending as well as UK high property rates, increased input costs, and a highly competitive restaurant market.

Famous Brands said in April that it would not provide further financial support for GBK because of uncertainty over when restaurants would reopen after the UK coronavirus lockdown imposed the previous month.

GBK had reopened 37 of its 62 UK stores for full service by August 13 and one of its five stores in Ireland.

In May, BRG, which also owns the Giraffe and Ed’s Easy Diner brands in the UK, rescued the Anglo-Italian restaurant chain Carluccio’s, buying 30 of its British sites, although 40 others were closed.

 

The Government has announced a wide range of supports for the ailing Tourism and Hospitality industry in Budget 2021.

Among the measures unveiled by Finance Minister Pascal Donohue are a VAT reduction for hotels, bars, restaurants and cafés, along with financial supports for businesses impacted by Covid-19 restrictions.

VAT will fall from 13.5% to 9% from 1 November. The decrease will remain in place until December 2021.

Businesses that have had to close or limit access, due to Covid-19 restrictions, will be eligible to apply for payments of up to €5,000 per week, based on their 2019 average weekly turnover.

That scheme will commence immediately and will run until the end of March.

 Budget 2021, includes an comprehensive package of measures for a sector that supported 260,000 jobs before the pandemic. It includes direct compensation for closures, cash grants and €336 million of tax cuts.

The Irish Tourism Industry Confederation  has welcomed measures in the Budget including the reduced VAT rate and the financial scheme of up to €5,000 per week to support enterprises most affected by Covid restrictions, and the €55 million business continuity fund to be administered by Fáilte Ireland

which, it says,  “are all positive steps to help hospitality businesses survive

this existential crisis”.

 ITIC CEO Eoghan O’Mara Walsh said that there  was disappointment that the value of the wage subsidy scheme was not enhanced and this puts

tourism businesses under immense financial strain over the winter to maintain staff while demand is so negligible.

 “The devil is in the detail as with all budgets” said O’Mara Walsh “but we broadly support the measuresbrought  in today and give credit to the Government for  acknowledging that tourism and hospitality has been one of the hardest hit sectors by the pandemic”.