Restaurant Share Discussion Threads

[adobbing] 28/3/2020 11:15

Chiquito poised to enter administration

27-Mar-2020 at 18:29
By Sophie Witts

The chain is owned by The Restaurant Group (TRG), which is also putting its 11-strong Food and Fuel gastropub group in to administration.

The Times​​​ reports around 1,500 jobs are at risk.

It comes just over a week after TRG said it had seen a ‘significant’ impact on trading following the virus shutdown, with sales falling 12.5% across the business.

A TRG spokesperson told BigHospitality​;: “We have conducted a review of the performance of our business divisions, with a particular focus on the expected future cash generation profile of each of our business units.

“The Group believes that both Food and Fuel Limited and Chiquito Limited will achieve negative EBITDA in the financial year ending 27 December 2020.

“As a result, the Group has taken the very difficult decision to appoint administrators for Food and Fuel Limited and filed a notice of intention to appoint an administrator for Chiquito Limited.

“The decisions have been incredibly difficult and we recognise the significant impact on all of our colleagues that are affected. We thank them for their hard work and commitment during these very testing times.”

Around 20 of Chiquito’s 79 restaurants are not part of Chiquito Limited and will be unaffected.

TRG bought Food and Fuel for £15.4m in 2018.​​ The administration will not impact its other 74 pubs within the Brunning and Price and Ribble Valley Inns groups.

TRG trades from around 650 sites in total and also owns restaurant brands including Wagamama, Frankie & Benny’s and Coast To Coast.

In February the company said it was looking to to cut the size of its struggling leisure arm, which includes Chiquito, from 350 sites to 260-75. ​​






“In February the company said it was looking to to cut the size of its struggling leisure arm, which includes Chiquito, from 350 sites to 260-75.”

Mission almost accomplished!

[grabster] 28/3/2020 00:25

I thought the same.

[sharw] 27/3/2020 19:16

I find it very bad that RTN has appointed administrators to two of its subsidiaries and can't be bothered to issue an RNS to tell shareholders.

[philanderer] 27/3/2020 10:29

BERENBERG CUTS RESTAURANT GROUP TO 'HOLD' ('BUY') - TARGET 57 (175) PENCE

[philanderer] 27/3/2020 10:05

Peel Hunt upgrades from HOLD to BUY .........tp 100p cut from 120p

[typo56] 26/3/2020 22:38

Like FLYB blaming it on CV. I wonder how many other companies will use it as an opportunity to disguise their failures. e.g. John Lewis perhaps won't reopen all their stores?

[adobbing] 26/3/2020 18:56

Although bad for the 1500 employees, overall positive for the company as it removes another part of the business that dragged it down.
What now for F&B’s ?

[adobbing] 26/3/2020 18:52

Chiquito is poised to become the first big restaurant sector casualty after its owner filed a notice of its intention to appoint administrators, putting up to 1,500 jobs at risk.
The Mexican brand is owned by the Restaurant Group, which said that a review of the performance of its divisions had concluded that Chiquito and Food & Fuel, its London pub business, would both achieve “negative earnings” this year.

It is understood that “well under 10 per cent” of the Restaurant Group’s 21,500 employees will be affected, with one source suggesting a figure of about 1,500.

The company has appointed RSM, the restructuring specialist, as administrators to Food & Fuel and filed a notice of its intention to do the same with Chiquito Limited, the entity that owns 61 Chiquito outlets. Another 20 Chiquitos are unaffected.

Food & Fuel, which has 11 gastropubs, was only acquired by the Restaurant Group 18 months ago for £15 million from Karen Jones, the Prezzo boss. Its demise does NOT affect the group’s Brunning & Price pub division.

[philanderer] 26/3/2020 18:38

ITV News @itvnews


Majority of Chiquito restaurants to close permanently due to #coronavirus downturn

[grabster] 19/3/2020 11:17

This company - like many others - seems to have been caught on the hop and is having to make up policy in response to current circumstances.

Some companies have comprehensive 'disaster plans' permanently drawn up and merely need to trigger them. Today's update from National Express (NEX) is a good example of the latter.

[john09] 18/3/2020 14:32

Still think its too early to pick this one up. Today’s RNS hasn’t really caused a fillip

I notice pop up morgues are being erected in london and i imagine london in the next 3 weeks is going to look pretty dreadful in the world media

Extremely sad times i think are ahead of us

[martinc] 18/3/2020 13:18

They assume things will recover a bit on the second half. I think that may be optimistic, since we have to wait for a vaccine.

[grabster] 18/3/2020 08:55

T>O>W. -- I agree. The update is honest enough about various negative aspects, yet includes a ridiculously complacent assurance.

[john09] 18/3/2020 08:50

I think this one could be a good buy actually but wasn’t sucked into that rally at open. I still think its got a little further top drop not least since the market cap is still triple figures!!!

[sbb1x] 18/3/2020 08:05

Hit a few shorters, nice surprise

[deduce101] 17/3/2020 21:31

Hopefully, they paid for the pandemic option on their insurance policy.

"Most British companies that suffer a loss of sales or shut down due to the Covid-19 pandemic are not protected by their insurance policies, the Association of British Insurers has told MPs, leaving firms exposed to bankruptcy even when the government orders them to close.

Policies that protect companies from closure following a pandemic are rare the ABI said in a letter to the business, energy and industrial strategy select committee.

The ABI told the business committee that standard policies excluded cover for a loss of sales related to pandemics and only a few businesses pay the extra to include them.
...
Chair of the committee, Labour MP Rachel Reeves, said: “The ABI says most policies don’t cover pandemics, so even if the government mandated businesses to close, they won’t be able to make a claim. They won’t be covered.”"

[grabster] 17/3/2020 14:45

adobbing - I don't disagree that an eventual rebound will benefit those in a position to exploit it. But that won't include companies that, by the end of this summer, will no longer exist. New companies will emerge, but many legacy companies just won't survive the current and imminent carnage. Some are only just emerging from the footfall reduction brought about by floods, and are not in the healthiest shape for another fight.

Many companies will take a battering but emerge at the end of this epidemic. Many others are just not in good enough shape to get through it without folding.

[adobbing] 17/3/2020 14:27

If you believe that at the end of this, people will chose to stay at home and no longer want to go out and eat in restaurants and pubs, you are deluded.

The freeholds on the Pubs alone will be worth way more than the current market cap.

Once the bottom is reached (and nobody knows when that will be) there will be an almighty rebound, when investors both corporate and private go on the lookout for value!

[grabster] 17/3/2020 14:26

Any white knight looking to save a restaurant chain from collapse is unlikely to pick this one, imo - but might just watch and snap up salvageable remnants after it goes into administration.

It's difficult to read the recent Results without wincing at some of the phrases in it regarding, for example, locations.

".. operates a multi-brand Concessions business which trades principally in UK airports..".

".. well ahead of passenger growth; strong presence in new Manchester terminal secured.."

[debsdowner] 16/3/2020 18:01

This is finished now with the PM saying avoid pubs, clubs, restaurants.

[john09] 16/3/2020 08:45

What a mess this one is