As expected, Lunch Garden were declared bankrupt this morning during an extraordinary works council meeting. But the buyer, CIM Capital, will save the majority of restaurants and only half of the jobs.
The company had sought and found in advance a buyer for part of its activities: CIM Capital. This will allow 42 out of 62 restaurants to remain open.
About half of Lunch Garden’s workers, or 300 out of 600 (franchisees not included), will be part of the future of the restaurant chain, said CEO Stephan Brouwers. There is still no certainty regarding independent restaurants.
►Read also||The Lunch Garden restaurant chain goes bankrupt (01/18)
The management indicates in a press release “be aware of the enormous impact on staff“. “This is an extremely difficult decision, but it is the only way to ensure a sustainable future and retain as many jobs as possible.” Lunch Garden claims “work intensively” with the curators and CIM Capital to finalize a recovery plan as quickly as possible.
The company has had a difficult few years recently, particularly struggling to recover from the financial impact of mandatory closures linked to the pandemic. Despite the last two more encouraging financial years, it remained dependent on financial injections from its main shareholder, the British fund ICG, “which was no longer viable“, she notes
-Several restaurants remained closed this weekend following the bankruptcy announcement. employees began strike action fearing they would not be paid for hours worked in January.
Lunch Garden failed to keep its head above water post-Covid, nor to cope with rising energy costs.
All Brussels restaurants close
The four Lunch Gardens in the Brussels region (Auderghem, Evere, Berchem-Saint-Agathe and Inno Rue Neuve) will close their doors. On the outskirts, the Kraainem restaurant could be franchised. Nothing to report, however, for the Drogenbos brand
■ Report by Kim Gaudaire, Gauthier Flahaux and Laurence Paciarelli
