Charlotte HughesFranco Manca has announced the closure of 16 of its 70 UK restaurants as part of a Company Voluntary Arrangement (CVA) launched in April 2026, putting approximately 225 jobs at risk and leaving staff across London and eight regional cities facing an uncertain few weeks.
Which Sites Are Closing
The 16 closures affect restaurants across London — including Battersea, Brixton, Bromley, Broadway Market, Chiswick, Kilburn, New Oxford Street, and Stoke Newington — and eight sites outside the capital: Bishop's Stortford, Cheltenham, Didsbury, Glasgow, Hove, Lincoln, Plymouth, and one further location.
The move was confirmed by Fulham Shore, Franco Manca's parent company, which is owned by Japanese group Toridoll Holdings. Fulham Shore reported a 5.4% year-on-year revenue decline in its most recent results. The company cited "disproportionately high" UK business taxes, VAT rates significantly above European comparators, rising employer National Insurance contributions, increases to the National Living Wage, and higher utility and rent costs as the primary drivers.
The CVA — a legally supervised rescue mechanism that allows a company to restructure its debts while continuing to trade — means Franco Manca itself is not in liquidation. The remaining 54 restaurants will continue operating. But for workers at the 16 closing sites, the distinction matters little: they face redundancy.
What Is a CVA and What Does It Mean for Employees?
A Company Voluntary Arrangement is a formal insolvency procedure governed by the Insolvency Act 1986. Under a CVA, a company reaches a binding agreement with creditors to repay a proportion of its debts over time, in exchange for being allowed to continue trading. CVAs frequently involve closing underperforming sites and reducing the workforce.
Critically, a CVA does not automatically end employment contracts. Workers at sites scheduled for closure are made redundant through a separate process, and their employment rights are substantially protected by UK legislation.
According to guidance from GOV.UK on redundancy rights, employees with at least two years of continuous employment are entitled to statutory redundancy pay. The amount depends on your age, weekly pay (capped at £643 per week as of April 2025), and length of service. Workers under 22 receive half a week's pay per year of service; workers aged 22-40 receive one week per year; workers aged 41 and over receive one and a half weeks per year.
Your Key Rights If You Work at an Affected Site
Redundancy pay: If you have been employed continuously for two or more years, you are legally entitled to statutory redundancy pay. Many employment contracts also provide enhanced (contractual) redundancy pay above the statutory minimum — check your contract and staff handbook.
Notice period: You are entitled to your contractual notice period or the statutory minimum, whichever is greater. Statutory minimum notice ranges from one week (one to two years of service) up to 12 weeks (12 or more years of service). During your notice period, you continue to accrue annual leave and remain entitled to your normal wages.
Collective consultation: If 20 or more employees are being made redundant at a single establishment within a 90-day period, the employer is legally required to enter a minimum 30-day collective consultation period before dismissals take effect. For 100 or more redundancies, this minimum rises to 45 days. If Franco Manca closes multiple sites simultaneously, collective consultation obligations are highly likely to be triggered. Failure to comply can result in a "protective award" of up to 90 days' uncapped pay per affected employee.
Individual consultation: Even outside collective consultation, individual consultation is required before dismissal. A redundancy without any consultation — regardless of the financial situation — can constitute unfair dismissal.
TUPE protections: If the business or a specific site is sold to another operator as part of the CVA process, the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) may apply. Under TUPE, employment contracts transfer automatically to the new employer on existing terms. If a buyer is found for some Franco Manca sites, staff at those locations may have stronger protections than they realise.
What to Do If You're Affected
Employment rights in insolvency situations are complex, and the pace of events during a CVA can leave workers uncertain about where they stand. Legal experts in employment law recommend the following steps:
Keep all written communications from your employer regarding the redundancy process, including any letters about consultation meetings, proposed dismissal dates, and settlement offers.
Check your contract for any enhanced redundancy terms. Many hospitality workers are surprised to find provisions more generous than the statutory minimum.
Attend consultation meetings — and request written records of any discussions. Your employer is obliged to consider alternatives to redundancy during the consultation period.
Consider whether the process has been followed correctly. If collective consultation obligations were not triggered — or if they were not properly observed — you may have a claim for a protective award. This is one of the more valuable potential claims available to redundant workers in mass redundancy situations.
For workers facing similar situations at other companies, related coverage includes what Jaguar Land Rover's job cuts mean for UK workers' redundancy rights and lessons from The Works retail closure for employees facing redundancy.
When to Seek Employment Law Advice
The Franco Manca CVA is a reminder that even well-regarded employers can face structural difficulties — and that when they do, employees who understand their rights are in a significantly stronger position than those who do not.
Disclaimer: This article provides general information only and does not constitute legal or financial advice. For advice specific to your situation, consult a qualified employment law specialist.
If you work at one of the 16 affected sites, or at any employer currently in financial difficulty, an employment law solicitor can quickly assess whether the redundancy process being followed meets legal requirements, whether enhanced pay is owed, and whether any TUPE protections might apply. ExpertZoom connects UK workers with qualified employment law specialists for initial consultations — getting clarity on your rights costs far less than discovering too late that you were entitled to more.
