Founded in 1966, the “GB restaurants” which became Lunch Garden in 1987, based their success on inexpensive “self-service” catering. But the concept has aged poorly and the social debt has exploded during the Covid period. A few weeks ago, British shareholder ICG decided to throw in the towel. It will be replaced by the Belgian fund CIM Capital which will, however, significantly reduce the size of the current Lunch Garden.
Lunch Garden files for bankruptcy: here is the list of restaurants that will close
1. A “silent” bankruptcy
The announcement of Lunch Garden’s bankruptcy surprised employees and unions. “We learned about it three days ago through the pressdenounces Sandra Antenucci, permanent at the CSC. This was a very bad experience and a real shock for the employees. We knew there were liquidity problems because the end-of-year bonus had not been paid in December.”. However, this bankruptcy had been organized for many weeks by management. “The latter negotiated everything in secret. She chose the framework of a “silent bankruptcy”.
This type of procedure, also called “pre-pack”, comes from a European directive and was transposed into Belgian law in 2023. It allows a company which considers itself to be in a state of bankruptcy to already prepare the transfer of assets with its future buyer, even before the official announcement of its bankruptcy filing. “The idea is to avoid business discontinuity, continues Sandra Antenucci. But it is problematic because there is no communication with the unions and therefore no possibility of negotiating a social plan. We were therefore presented with a fait accompli.”
gull“The management negotiated everything in secret.”
2. A large debt and a concept that has “aged poorly”
The Covid crisis has hit Lunch Garden head-on. “Mandatory closures during the pandemic had a profound financial impact that is still being felt.”explains management. In addition, debts linked to the government, particularly for the Covid19 period, made it impossible to sell all of the activities.” These tax and NSSO debts would amount to “several million euros“, according to the unions.
-For this specialist, the very concept of the Lunch Garden, a low-cost self-service restaurant, has “poorly aged”. “Many restaurants deserve a real brushstroke. The offer also no longer corresponds to the type of clientele, with prices which have increased significantly in recent years. For five euros more, people prefer to go to a brasserie with real table service.”
Beautiful people among the shareholders of CIM capital which has just taken over Lunch Garden
3. Closures especially in Wallonia and Brussels
Among the 19 closures announced, more than half concern Brussels and Wallonia. The capital is particularly affected since the four restaurants (rue Neuve, Auderghem, Evere and Berchem-Sainte-Agathe) that include Lunch Garden are doomed to closure. In Wallonia, restaurants in Froyennes, Messancy, Waterloo, Flémalle, Libramont, Wépion and Hannut should close their doors. Finally, six other Lunch Gardens would be closed in Flanders, to which is added the Bistro Garden in Tervuren.
A question mark remained for two restaurants (Arlon and Edegem) but these are already counted by management among the 19 stores scheduled to close. Technically, Lunch Garden’s current 700 employees were laid off on Monday and some of them, only half, according to the unions, will be rehired, either by the company itself or by franchisees. “But it will in any case be on less advantageous conditions than currently”insists Sandra Antenucci.
