The under-performance of a number of new openings and its Deliveroo Editions have played a significant role in the struggles faced by GBK, MCA understands.
Speculation is increasing that the Famous Brands-owned, c100-strong group is facing a restructure with Deloitte reportedly appointed to oversee the process, which could include a CVA.
It is thought that a restructure could see up to a quarter of the group’s c100 sites earmarked for closure.
Famous Brands has yet to clarify its statement to the Johannesburg Stock Exchange last month that it was “giving consideration to strategic options relating to a subsidiary that may have a material impact on the price of the company’s share price”.
The announcement came alongside a trading update which revealed that in the 22 weeks to 29 July GBK had seen like-for-like sales drop 10.6% (compared to a 2.6% slump for the same period in 2017) with system-wide sales falling 6.4% (2017: increase of 12.1%). The business reported an operating loss of £2.24m for the period, compared to £680,000 last year.
The group announced plans to close six sites in May of this year.