Giraffe and Ed’s Easy Diner outlets face closure in restructure

Over a third of Giraffe and Ed’s Easy Diner restaurants could close as part of a restructuring deal proposed on Monday for part of “chicken king” Ranjit Singh Boparan’s dining empire.

A possible 27 out of 70 Ed’s and Giraffe sites could shut if landlords accept plans for a company voluntary arrangement. London sites earmarked for closure include: Blackheath (Giraffe); Holland Park (Giraffe); Mayfair (Ed's).

The CVA proposal, a move which allows businesses to quit stores or seek rent cuts, was first revealed today by industry website Propel.

It comes a month after the food tycoon’s Boparan Restaurant Group (BRG) appointed KPMG to consider a possible sale or closure of some sites, or an outright sale of one or both brands.

BRG boss Tom Crowley said the brands have been hit by weaker consumer demand and rising costs.

He added: “The directors believe we have all the ingredients to drive a successful turnaround of the group and can confirm we have negotiated a comprehensive refinancing package to support that turnaround which will become available if we can secure the necessary support from our creditors.”

Rivals such as Byron Burger and Carluccio’s axed restaurants last year amid tough competition and soaring rents.

Boparan acquired Ed’s Easy Diner in 2016 from administration. Earlier that year it bought Giraffe from Tesco for around £13 million. Before that it was part owned by embattled ex-Patisserie Valerie chairman Luke Johnson.

Speaking about the latest proposal, Ed Cooke, the boss of shopping centres organisation Revo, said: “CVAs are a symptom of problems facing the retail sector, and ultimately they are bad for property owners, unfair for retailers not using this tactic and have enormous negative impacts on the communities left with the consequences of boarded up shops.”