Franco Manca, a popular pizza chain, has announced the closure of 16 out of its 70 restaurants, leading to the loss of approximately 225 jobs. The parent company, The Fulham Shore, has received approval from creditors to restructure the business.

The decision to close the restaurants was driven by the challenges posed by high UK taxes and the absence of business rates relief for the hospitality industry. The affected restaurants were deemed unsustainable in the current economic climate.

The company’s proposal for a company voluntary arrangement (CVA) garnered support from over 90% of voting creditors, enabling the restructuring to proceed. Additionally, Fulham Shore recently placed its sister brand, The Real Greek, into administration, resulting in the closure of nine out of its 28 restaurants.

Marcel Khan, the CEO of Fulham Shore, expressed gratitude for the creditors’ support and emphasized the strength of the Franco Manca brand. The company aims to stabilize its operations and enhance its customer offerings moving forward.

Paul Berkovi, the managing director of Alvarez & Marsal, highlighted the significance of the creditor vote in enabling Franco Manca to complete its financial restructuring and set the stage for operational improvements.

The specific restaurant locations that will be closing as part of this restructuring have been listed by the company.