The Restaurant Group has announced a proposal to enter a company voluntary arrangement (CVA) for its leisure estate.

Having announced last week that was to permanently close between 100 and 120 of its leisure brand sites – primarily in its 240-strong Frankie & Benny’s estate – this latest update has revealed that 125 of its trading restaurants will be closed.

As part of the process, which is being over seen by AlixPartners, the business will be seeking improved rental terms on a proportion of its remaining trading estate, which will be left at approximately 160 sites.

A comprehensive review of the estate has identified that approximately 210 of its sites are either underperforming, on unfavourable lease terms and/or not expected to generate future profitable returns going forward.

Of these, approximately 125 have been identified for closure and 85 will be subject to a reduction in rental costs and revised lease terms, leaving just 65 sites unaffected by the process.

The CVA will not affect Wagamama, the group’s airport concessions or pub operations.

“The issues facing our sector are well documented and we have already taken decisive action to improve our liquidity, reduce our cost base and downsize our operations,” said Andy Hornby, TRG CEO.

“The proposed CVA will deliver an appropriately-sized estate for our Leisure business to ensure we are well positioned despite the very challenging market conditions facing the casual dining sector.

“I would like to wholeheartedly thank all of my TRG colleagues for their continued understanding and extraordinary commitment during this unprecedented period.”