Gourmet Burger Kitchen closure concerns as company looks to restructure

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There are concerns another chain may pull out of Riverside Bedford as Gourmet Burger Kitchen (GBK) has reportedly asked Deloitte to look at where it can cut costs through restructures across the chain, according to The Sunday Times. This is amid rumours a Company Voluntary Arrangement (CVA) for the business could be around the corner.

The news comes after Famous Brands, who own GBK, issued an announcement in August suggesting one of their brands may face ‘strategic options’. In a statement to shareholders they said: “Famous Brands is giving consideration to strategic options relating to a subsidiary that may have a material impact on the price of the company’s share price. Shareholders are requested to exercise caution when dealing in the company’s shares.”

Famous Brands recently filed losses of £2.24m in the 22 weeks to 29th July 2018, that’s triple the amount compared to the same period in 2017. Anthony Clark, an analyst at Vunani Securities, has commented in recent months that GBK is “the septic wart on the overall business and should be cut out.”

It follows the closure of Prezzo owned MEXico, not even a year after the new Riverside North development had officially been opened.

We have contacted Gourmet Burger Kitchen for comment.

 

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