Chiquito set to become the first big coronavirus casualty in the restaurant sector with 1,500 jobs at risk
Chiquito was on the brink of collapse last night – making it the first big coronavirus casualty in the restaurant sector.
The Mexican brand, owned by The Restaurant Group (TRG), filed a notice of intention to appoint administrators, putting around 1,500 jobs at risk.
The company has also appointed restructuring firm RSM as administrators to one of its pub businesses, Food & Fuel, which it bought for £15million in 2018.
Mexican brand Chiquito, owned by The Restaurant Group, filed a notice of intention to appoint administrators, putting around 1,500 jobs at risk
The move follows a review of the performance of parent company TRG’s divisions, which found that both would deliver ‘negative earnings’ this year.
The group has suffered weeks of turbulence on the stock market, and seen its share price fall from 161p in January to 47p last night (17.6 per cent, or 7.02p).
The entity being put into administration is Chiquito Limited, which owns 61 outlets, although another 20 restaurants of the same name will be unaffected.
TRG, run by Andy Hornby, 53, who was in charge of HBOS when its demise led to a government bailout in financial crisis, said: ‘The decisions have been incredibly difficult.’