There is uncertainty over the future of a popular chain restaurant in Bath , after a 'restructuring plan' to close 27 sites was revealed.

Giraffe on Dorchester Street, opposite Bath Spa train station, has a four star rating on reviews website TripAdvisor after more than 550 reviews.

But fans of the self-described 'funky' diner will be fearful for its future in Bath.

That's because Giraffe and Ed’s Easy Diner will close 27 restaurants between them.

A view of a Giraffe restaurant
A view of a Giraffe restaurant

Around 340 of 1,300 staff across the two brands are expected to lose their jobs as a result of the move.

Creditors have thrown a lifeline to the casual dining brands on Thursday (March 21) by voting through a Company Voluntary Arrangement (CVA), which will also give the chains rent reductions on 13 sites.

However it means some restaurants will close - but it's not been revealed which yet.

Earlier this month reassurances were given that Bath's Giraffe would not shut.

But it won't be known for certain until a list of the 27 places earmarked for closure is published.

Will Wright, restructuring partner at KPMG and joint supervisor of the CVA, said: “This is a critical step forward for the business, allowing Giraffe Concepts to complete its financial restructuring plan and embark on a comprehensive operational transformation programme.”

The business, which is owned by Boparan Restaurant Group (BRG), first proposed the plans earlier this month.

Tom Crowley, CEO of BRG said: “We are pleased to announce that the CVA has been approved and we can now begin to execute our plan. We thank our creditors who have supported the business through this process.”

The company said that although like-for-like sales had improved at the brands since they were acquired, several sites remained unprofitable.

BRG owns a number of other household names, including fish and chip restaurant Harry Ramsden and the upmarket Cinnamon Collection.

What is a Company Voluntary Arrangements or CVA?

According to the website companyrescue.co.uk...

A CVA is a legally binding agreement with a company's creditors to allow a proportion of its debts to be paid back over time. 75% of the creditors who voted need to support the proposal.

Once the proposal has been approved then all unsecured creditors are bound by the arrangement. The company can carry on trading as normal and the directors remain in control. The CVA is monitored by a supervisor who has to be a licensed insolvency practitioner. The arrangement usually lasts for 3-5 years.

It is also the master franchisee for US brand Slim Chickens, which first opened in the UK last year.

BRG acquired Giraffe from Tesco in 2016, and later combined it with Ed’s Easy Diner, which it had bought in a pre-pack administration that same year.

The two brands form a combined entity, which in the most recently available accounts had annual turnover of £67.1 million.

In the same period, underlying losses came to £1.6 million.

Last year, several casual dining brands overhauled their businesses, with some closing sites, amid rising costs and tougher competition in the sector.

Prezzo, Jamie’s Italian, Byron, Carluccio’s, Gaucho and Gourmet Burger Kitchen all shut restaurants.

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