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Little Chef to close 67 outlets costing around 500 jobs | Little Chef to close 67 outlets costing around 500 jobs |
(about 1 hour later) | |
Motorway restaurant group, Little Chef, has announced it is to close 67 of its 161 outlets and make between 500 and 600 job cuts. | Motorway restaurant group, Little Chef, has announced it is to close 67 of its 161 outlets and make between 500 and 600 job cuts. |
The firm has said the jobs being cut are a mix of full and part-time positions around the UK. | |
It is closing the restaurants because they are making a loss, it said. | It is closing the restaurants because they are making a loss, it said. |
Little Chef blamed the weak economy and the location of the branches for their poor performance. It will leave the company with around 1,500 staff. | Little Chef blamed the weak economy and the location of the branches for their poor performance. It will leave the company with around 1,500 staff. |
Overhaul | Overhaul |
The group went into administration in 2007, after which the majority of its assets were bought by private investment business RCapital. | |
In 2008, several of its branches were given an overhaul by celebrity chef Heston Blumenthal for a reality TV show. | |
The company said it would work to find alternative employment where possible for those affected by the store closures. | The company said it would work to find alternative employment where possible for those affected by the store closures. |
It will also continue to revamp its remaining restaurants. | It will also continue to revamp its remaining restaurants. |
"By closing these sites, we will be able to focus our attention on protecting over 1,500 of our colleagues' jobs," said Little Chef chairman Graham Sims. | |
Owners | |
Since its formation in 1958, the firm has been sold to a number of firms, including Granada and Compass. | |
Before entering administration, it was bought in 2006 by its then chief executive, Simon Heath, and the Peoples Restaurant Group. | |
Unions have criticised its current owners for failing to protect jobs. | |
"This is dreadful news for the employees in these restaurants due for closure," said GMB senior officer Paul Maloney. |