Belgium's Lunch Garden salvages 42 locations, 300 jobs
The Belgian restaurant chain Lunch Garden has officially declared bankruptcy. The new owner, investment fund CIM Capital, has decided to take over 42 of the 62 restaurants, providing a chance to preserve about half of the 600 jobs in the chain.
According to the portal RetailDetail.eu, the commercial court in Brussels has officially declared the Lunch Garden restaurant chain bankrupt. The investment fund CIM Capital will assume the new shareholder role.
There is a chance to save jobs
The portal reports that the new owner plans to keep about 300 of the company's 600 jobs. Additionally, the fund plans to maintain half of the 200 positions in franchised restaurants and 30 out of 50 positions at the company's headquarters.
As part of the restructuring, some company-owned and franchised restaurants will close, and selected locations will be transferred to independent franchisees.
The restaurants scheduled for closure include company-owned locations in Froyennes, Inno Nieuwstraat, and Messancy; franchised restaurants in Antwerp, Arlon, or Edegem; and restaurants looking for independent operators in Ans, Boncelles, Gosselies, or Kortrijk.
The financial problems of Lunch Garden intensified due to the COVID-19 pandemic and rising inflation. The chain's CEO, Stephan Brouwers, admitted that the restructuring decisions are difficult and affect many employees and their families. However, he emphasized that these changes are necessary to save as many jobs as possible and enable the company to continue operating in the market.
Americans are closing two plants in Europe
Lunch Garden is not the only chain in Belgium facing mass layoffs. According to WP Finance, the American brand Tupperware, which produces plastic containers, is closing plants in Belgium and Portugal. The American giant's decision is surprising, especially since the Belgian plant in Aalst made a profit of $707,000 and had a turnover of $42 million.
In Belgium, 270 people will lose their jobs, and in Portugal, about 200. Belgian employees are considering legal action against the American directors, accusing them of evading responsibility. The official bankruptcy has not yet been declared, affecting the severance pay for those laid off.
