Franco Manca has secured creditor approval for a restructuring that will see 16 restaurants close, including the Glasgow branch, with the company aiming to stabilise operations and protect the wider estate
The Franco Manca restaurant group has confirmed it will shut 16 of its venues following a creditor-backed restructuring plan. The decision follows a formal proposal under a CVA (a company voluntary arrangement), which the business says is necessary to restore financial stability.
Before these closures, the brand operated around 70 restaurants across the UK. Management has pointed to a combination of disproportionately high UK taxes and an absence of meaningful business rates relief for the hospitality sector as pressures that made some individual sites no longer viable.
The affected outlets include a city centre site in Glasgow, located at 93 Mitchell Street, which the company opened on 3 June 2026. That Glasgow restaurant was the chain’s second Scottish location, joining its original Scotland opening in 2019 in Edinburgh.
Alongside the venue closures, the restructuring is expected to impact approximately 225 jobs. Franco Manca’s parent, The Fulham Shore, initiated the CVA process as part of wider measures to reduce costs and shore up the business for the future.
Restructuring and rationale
The move to implement a CVA reflected a strategic decision to concentrate resources on the most profitable parts of the estate. Management argued that certain branches had become no longer sustainable given the operating cost environment. By selecting closures and adjusting leases and rents under the CVA framework, the business aims to lower its fixed overheads and improve profitability per site. The company emphasised that the restructuring is not a retreat from the market overall but a targeted reshaping intended to preserve the core brand and customer base.
CVA approval and stakeholder support
Franco Manca’s CVA received support from more than 90% of voting creditors, a level of backing management described as decisive in allowing the plan to proceed. Senior executives said the outcome reflects constructive engagement with lenders and suppliers and creates a practical pathway to complete the financial reorganisation. The plan is intended to give the group the time and financial headroom to invest in menu, service and site performance improvements once the restructuring is implemented.
Impact on staff, sister brands and next steps
The announced closures and the CVA will have direct consequences for employees and local communities. The company estimates around 225 jobs will be affected by site closures. Management framed the plan as an attempt to safeguard the majority of the workforce by saving the stronger sites and returning the business to sustainable trading. Separately, the parent company recently placed its sister chain, The Real Greek, into administration; that business was quickly acquired by the Karali Group, which subsequently confirmed the closure of nine of its 28 restaurants. These moves underline the wider strain across casual dining brands and the need for dramatic measures to secure long-term viability.
Leadership response and outlook
Franco Manca’s chief executive, Marcel Khan, expressed gratitude for creditor support and described the brand as having a strong heritage and loyal customers, noting the plan will allow management to focus on enhancing the customer offer and operational performance. Paul Berkovi, managing director at Alvarez & Marsal, said the significant creditor backing reflected constructive stakeholder engagement and that the CVA provides an important platform for operational transformation. Looking ahead, the company plans to implement the agreed changes quickly and communicate directly with affected staff and suppliers.
List of affected restaurants
The following sites have been identified for closure as part of the restructuring: Battersea, Bishops Stortford, Brixton, Broadway Market, Bromley, Cheltenham, Chiswick, Didsbury, Glasgow (93 Mitchell Street), Hove, Kilburn, Lincoln, New Oxford Street, Plymouth, Stoke Newington and Tottenham Court Road. The company will proceed with the practical steps needed to vacate these premises while offering support to staff impacted by the closures.
For customers and local communities, Franco Manca has said it will aim to keep communication channels open, provide information about refunds or bookings for affected restaurants, and highlight nearby branches that remain open. The restructuring marks a significant moment for the group as it seeks to navigate a difficult trading environment while protecting the long-term future of the brand and the majority of its estate.
