UK restaurant chain The Real Greek is set to close nine of its locations and axe 151 jobs despite a rescue deal after falling into administration.
The chain, which was founded in London in 1999, has been rescued from the brink of collapse after the owners of Cote Brasserie stepped in on Friday, May 1, to buy some of its outlets. But Cote owner Karali Group said it would only save 19 out of The Real Greek's 28 UK restaurants as part of the rescue deal, meaning nine of its locations will close. Karali Group made an offer for most of the smaller operator's sites after Japanese restaurant group Toridoll - the owner of The Real Greek's parent company Fulham Shore - was placed into administration.
The new owner said the move to save 19 of the locations will save 358 out of 509 jobs, meaning 151 jobs will be lost, despite the rescue deal.
According to the BBC, The Real Greek sites that are set to close are:
Industry publication Propel reported that The Real Greek's central kitchen will also be closed.
Last month, Fulham Shore said it was reviewing future options for the Greek chain and announced the review as it launched a company voluntary arrangement (CVA) restructuring process for sister restaurant brand Franco Manca, which will see it shut 16 venues with the loss of 225 jobs.
Marcel Khan, chief executive of Fulham Shore, said: "The transaction will ensure that the business is placed on a more sustainable footing for the future, while allowing The Fulham Shore to focus its energy and investment behind Franco Manca and its significant growth potential. We're pleased to be handing it over to Karali with real momentum.
"We will now do everything we can to support colleagues affected by this process and believe that both the brand and its teams will be in very good hands as the business moves into its next chapter."
Toridoll said earlier on Friday (May 1) that The Real Greek had suffered more due to current poor trading conditions.
It said: "In recent years, high levels of inflation in the UK, driven by rising energy and food prices together with increase in labour costs resulting from rises in the minimum wage, have created a more challenging operating environment for the hospitality industry than initially anticipated."
"The deterioration in the economic environment has had a more significant impact on the Greek restaurant brand The Real Greek than on the Franco Manca business."
Fulham Shore was bought by Toridoll, with backing from investment firm Capdesia, in 2023 for £93.4million.
Paul Berkovi, managing director at administrators Alvarez & Marsal, said: "We have worked closely with The Real Greek's management team and are pleased to have completed a transaction that secures a future for a restaurant group enjoyed by diners over many years.
"Our immediate focus as administrators will be to provide a smooth transition for the business and to support employees affected by site closures. We are grateful to all stakeholders for their constructive engagement throughout this process."
