The Real Greek is to shut nine restaurants with 151 job losses after the hospitality chain fell into administration.
Cote owner Karali Group confirmed on Friday that it has struck a rescue deal for the business after Japanese restaurant group Toridoll – the owner of The Real Greek’s previous parent company Fulham Shore – was placed into administration.
However, Karali said it would only save 19 of The Real Greek’s 28 restaurants across the UK.
It has not disclosed which locations will shut and which will remain open.
The new owner said the move will also result in 151 job losses, although it will secure the future of 358 workers.
Industry publication Propel reported that The Real Greek’s central kitchen will also be closed.
Last month, Fulham Shore said it was reviewing future options for the Greek chain.
It announced the review as it launched a company voluntary arrangement (CVA) restructuring process for sister restaurant brand Franco Manca, which will see it shut 16 venues with the loss of 225 jobs.
Marcel Khan, chief executive of Fulham Shore, said: “The transaction will ensure that the business is placed on a more sustainable footing for the future, while allowing The Fulham Shore to focus its energy and investment behind Franco Manca and its significant growth potential.
“We’re pleased to be handing it over to Karali with real momentum.
“We will now do everything we can to support colleagues affected by this process and believe that both the brand and its teams will be in very good hands as the business moves into its next chapter.”
Toridoll said earlier on Friday that The Real Greek had suffered more due to current poor trading conditions.
It said: “In recent years, high levels of inflation in the UK, driven by rising energy and food prices together with increase in labour costs resulting from rises in the minimum wage, have created a more challenging operating environment for the hospitality industry than initially anticipated.”
“The deterioration in the economic environment has had a more significant impact on the Greek restaurant brand The Real Greek than on the Franco Manca business,” Toridoll added.
Fulham Shore was bought by Toridoll, with backing from investment firm Capdesia, in 2023 for £93.4 million.
Paul Berkovi, managing director at administrators Alvarez & Marsal, said: “We have worked closely with The Real Greek’s management team and are pleased to have completed a transaction that secures a future for a restaurant group enjoyed by diners over many years.
“Our immediate focus as administrators will be to provide a smooth transition for the business and to support employees affected by site closures.
“We are grateful to all stakeholders for their constructive engagement throughout this process.”
