Shropshire Star

Chiquito falls into administration with 1,500 jobs impacted

The owners of Chiquito restaurants have put the chain into administration, as it struggles to cope with the fallout from the coronavirus outbreak on the business.

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Chiquito has restaurants in Shrewsbury, Wolverhampton, Dudley, Walsall and Birmingham

The Restaurant Group, which also owns Wagamama and Frankie & Benny's, said it would also shut its Food and Fuel chain of pubs in London.

About 1,500 jobs are likely to be affected and the move comes less than a week after the company said sales plummeted 12.5 per cent over two weeks.

Chiquito has restaurants in Shrewsbury, Wolverhampton, Dudley, Walsall and Birmingham. A total of 60 Chiquito sites will remain shut.

A spokesman said: "Covid-19 has had an immediate and significant impact on trading across the group.

"We have conducted a review of the performance of our business divisions, with a particular focus on the expected future cash generation profile of each of our business units."

He added that both groups are expected to hit losses this year, "as a result, the group has taken the very difficult decision to appoint administrators for Food & Fuel Limited and filed a notice of intention to appoint an administrator for Chiquito Limited.

"The decisions have been incredibly difficult and we recognise the significant impact on all of our colleagues that are affected. We thank them for their hard work and commitment during these very testing times."

Pubs and restaurants have faced a tough week, with the Government announcing their closure, although takeaway services are allowed to continue.

Wolverhampton-based Marston's, which runs 1,400 pubs across the country, and Mitchells & Butlers, the owner of Toby Carvery and All Bar One also both warned they were struggling.

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