KKR-backed cafe owner crumbles

Myriad restaurants have gone bankrupt or shut down for good in recent months, unable to overcome slowing sales and forced closings caused by the pandemic. A growing list of UK eateries backed by private equity firms are no exception, despite the deep pockets of their owners.

The latest example is Casual Dining Group, the KKR-backed owner of the Café Rouge and Bella Italia chains in the UK and beyond. The company went into administration Thursday, a move that will result in CDG immediately closing 91 locations and laying off nearly a third of its 6,000 workers. CDG first filed to appoint an administrator in May, according to reports, with hopes of deciding on a restructuring plan that would allow it to avoid legal action from its landlords.

Other examples of UK restaurants struggling amid the pandemic abound. Byron Hamburgers, which is backed by Three Hills Partners, began bankruptcy proceedings in late June. And the British unit of Le Pain Quotidien, backed by Cobepa, reportedly closed 10 locations and sold the rest of its restaurants as an emergency measure.

Source: Pitchbook

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