(Bloomberg) -- Restaurant Group Plc, operator of the U.K.'s Frankie and Benny's Italian-American themed restaurants, plans to close about 125 sites and renegotiate its rent terms at another 85 outlets.
The restaurant owner said it's pursuing a restructuring process called a company voluntary arrangement. A series of troubled retailers and hospitality companies in Britain have done the same as the retail crisis is exacerbated by coronavirus-related shutdowns.
The agreement will be proposed by TRG U.K., a subsidiary that largely consists of the Frankie and Benny's venues. A crisis in the casual dining sector, driven by intense competition and changing consumer tastes, has deepened as the shutdowns added to strains on companies' finances.
The Restaurant Group closures could cost about 3,000 jobs, according to U.K. media reports.
Restaurant Group's Wagamama venues, airport concessions and pub operations won't be affected by the CVA, the company said.
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