Job cuts as Bella Italia owner goes into administration

The company in charge of Bella Italia and Cafe Rouge has called in administrators and will cut thousands of jobs.

Job cuts as Bella Italia owner goes into administration Pixabay

The owner of Bella Italia, Cafe Rouge and Las Iguanas has announced plans to close four Scottish restaurants after calling in administrators.

The company said it would close 91 of its 250 restaurants, cutting 1909 of its workforce in the process, but has saved others for now.

Bella Italia’s in East Kilbride and Dunfermline will be affected as will Cafe Rouge restaurant’s in Edinburgh and Inverness airport.

It still leaves around 4050 workers at the company’s sites across the UK.

The board said that entering administration was in the best interest of stakeholders during the “extreme operating environment” it is having to trade through.

It is looking for a new owner, but said that the administration would allow it to end negotiations with landlords, a “critical step” before finding a buyer.

Chief executive James Spragg said: “After reviewing all our options with advisers, it became clear that we needed to take this action in order to protect the business and secure the best possible future for Casual Dining Group as we look to conclude a potential sale.

“We are acutely aware of our duty to all employees and recognise that this is an incredibly difficult time for them. Working alongside the administrators we will do everything we can to support them through this process with a view to preserving as much employment as we are able to.”

Administrator Clare Kennedy, from Alix Partners, said: “”We appreciate that this is an extremely difficult time for all those associated with Casual Dining Group.

“Our immediate priorities are to assist those whose employment has been affected by today’s announcement and to secure a sale for the group in order to protect jobs and provide the Group’s much-loved brands with a sustainable platform for the future.”

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