Richoux Group disposes of five sites after reporting £6.7m loss

27 April 2017 by
Richoux Group disposes of five sites after reporting £6.7m loss

The Richoux Group has closed five restaurants and plans to rebrand its underperforming sites, having reported a "deterioration in consumer confidence".

The restaurant group, which appointed Jonathan Kaye as chief executive in October 2016, has 18 restaurants operating under the Richoux, Dean's Diner, Villagio, Friendly Phil's and Zintino brands.

It has also converted its Chislehurst and Port Solent Villagio restaurants to the Richoux brand.

Chairman Simon Morgan said the costs it has incurred will mean that the group will have to approach shareholders for more funds.

As a result of the group's reorganisation, it has reported adjusted EBITDA of £0.2m having made sales of £13.3m in the 52-week period ending 25 December 2016.

The net loss for the period, having taken into account pre-opening costs, impairment, reorganisation costs and "onerous lease provision" was £6.7m.
Morgan said: "Like many restaurant groups in the casual-dining sector, trading in the first quarter of this year has been difficult. In addition, during this period trading in some of our restaurants was interrupted while we converted or refurbished them.

"The impact of temporary closures will continue during the second quarter. Whilst our new Richoux and Friendly Phil's restaurants have only been trading for a brief period, the early signs from them are encouraging.

"The cost of converting or refurbishing restaurants and of closing underperforming restaurants, the reduction of income due to temporary closures and the current trading climate, have led the board to conclude that it will need to approach shareholders for further funds in due course."

Videos from The Caterer archives

Are you looking for a new role? See all the current hospitality vacancies available with The Caterer Jobs

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking