Owner of the famous Fife restaurant by the administration

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The future of a popular Fife restaurant is in doubt as its owner has signaled his intention to appoint directors.

Casual Dining Group has filed the notice of intent with the High Court, endangering 6,000 jobs.

Among the company’s restaurants is Bella Italia, next to the Odeon cinema at the Fife amusement park, on the outskirts of Dunfermline.

The group also owns the Café Rouge and Las Iguanas chains.

The move will give the company 10 days to consider “all options” for restructuring.

The company has confirmed that it is working with advisers to corporate finance company AlixPartners on a potential restructuring program aimed at putting the restaurant group on a sustainable footing.

Bella Italia at Dunfermline. Image: Google.

A spokesperson for the Casual Dining Group said: “As is widely recognized, this is an unprecedented situation for our industry and, like many other companies across the UK, the directors of Casual Dining Group are working closely with our advisers as part of our next steps.

“These notifications are a prudent measure in light of the company’s position and the bigger picture.

“These notifications will also protect the business from any potential threat of legal action from the owners while we review the details of government advice and formulate a plan for the business in these difficult times.”

The announcement comes as troubled rival chain Carluccio enters into a bailout deal that could save 900 jobs at the company.

Restaurant chains were hammered by the coronavirus pandemic after the government-imposed foreclosure forced them to close in March.

Industry leaders have warned that social distancing from the reopening will significantly damage the industry’s profitability.

It is understood that the Casual Dining Group is still reviewing various arrangements, including restructuring of voluntary business agreements (CVA) or administration of specific brands.

The group, which has authorized the majority of its staff, carried out transactions at around 250 sites across the UK before the foreclosure.

It is understood that the group has seen its profitability improve since it signed a refinancing agreement with the American private equity firm KKR in 2018.

Meanwhile, rival Giraffe chain owner Boparan Restaurants is said to be signing an agreement to buy Carluccio, which would save about 900 jobs.



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