Brussels (Brussels Morning newspaper) – Lunch Garden, a Belgian restaurant chain, filed for bankruptcy, closing 20 locations and reporting a 5.4 million euro loss. CIM Capital will take over 42 locations, preserving 260 jobs under CEO Brouwers.
Lunch Garden, a popular restaurant chain in Belgium, is going bankrupt. The company plans to let CIM Capital, an investment firm from Antwerp, take over part of its business. This decision was announced during a meeting at the company’s office in Evere. The unions were informed about the situation. CEO Stephan Brouwers said that bankruptcy is necessary for the company to have a better future. They want to save as many jobs as possible.
CIM Capital will take over 42 out of the 62 Lunch Garden locations. The company has faced serious financial issues. High operating costs led to a loss of €5.5 million, even though revenue increased. A plan to restructure five of its restaurants has already started. Lunch Garden is also working on a debt restructuring plan. This plan includes getting a large amount of money from its parent company.
How will Lunch Garden’s bankruptcy affect jobs and the future?
The bankruptcy filing means that Lunch Garden will close 20 of its locations. About 260 jobs will be saved under the new ownership. The management knows this affects the staff a lot. They are working with curators and CIM Capital to finish the recovery plan.
Even with money problems, the company is trying to change the market. They want to make their operations better and serve customers well in the future. Teaming up with CIM Capital is an important step for Lunch Garden to stay in business. There is hope to improve and remain strong in the restaurant industry.
“This is a very difficult decision, but it is the only way to build a sustainable future and preserve as many jobs as possible,”
Said Stephan Brouwers, CEO of Lunch Garden, in the press release.
Lunch Garden has had some good growth in sales and profits over the last two years. However, this was not enough to cover the investments they needed. Their shareholder, IC, had to keep putting in money, which became too difficult to manage. This is why Lunch Garden filed for bankruptcy.
They found new support from CIM Capital, an investment company in Antwerp. CIM Capital helps struggling businesses recover. They have helped other companies before, like part of the travel agent Neckermann and the car event Zoute Grand Prix.
There was an
“positive trend in turnover and operating profit”
over the past 2 years, but
“it was insufficient to support the necessary investments”,
According to Lunch Garden.
Lunch Garden is getting help from CIM Capital to start over. They want to keep 42 of their 62 restaurants open. CEO Brouwers is hopeful about this new chapter. However, there were big problems in the past year. Gino Van Ossel, a marketing expert, says the company has too much debt. This happened partly because of the coronavirus crisis.
The current owner did not want to invest more money. He also thinks Lunch Garden’s idea is old and does not attract young people anymore. People used to go there for cheap and tasty food after shopping, but now it is not seen as a fun place to visit. The goal is to change the concept to bring in more customers.
What changes will Lunch Garden implement after bankruptcy?
Lunch Garden is a Belgian restaurant chain that is making big changes because of money issues. These problems got worse during the COVID-19 pandemic when they had to close. In 2020, Lunch Garden had over 1,100 workers. Now, they plan to reopen 42 of their 62 restaurants. CEO Stephan Brouwers said they will keep about half of their current workers, which means around 300 out of 600 people will still have jobs.
There is still some concern about what will happen to employees at independent locations. The pandemic caused long-lasting money problems, and some restaurants did not do well, adding to the chain’s struggles. Rising costs from inflation also made things tougher for the company. By the end of 2023, Lunch Garden had reduced its workforce to just over 800 employees.
Lunch Garden has filed for bankruptcy to secure its future and save jobs. It will continue with help from CIM Capital, a firm that specializes in helping businesses recover. The company wants to strengthen itself in a tough market. Some locations will close during this process, but Lunch Garden is hopeful about coming back. They plan to adjust to new market conditions and keep the remaining restaurants open.
