Belgian restaurant chain Lunch Garden has officially been declared bankrupt by a commercial court in Brussels. Its new owner, investment fund CIM Capital, will take over 42 of the 62 restaurants. About half of the 600 jobs would be saved.
Relaunch in mind
CIM Capital, known for revitalising brands like Veritas and Neckermann, will take over as the new shareholder. The Antwerp-based fund aims to secure a sustainable future for the company and preserve approximately 300 of the 600 in-house jobs. Equally, half of the 200 jobs at franchised restaurants may be saved, as may thirty out of the fifty positions in the chain’s headquarters.
As part of the restructuring, several company-owned and franchised restaurants will close. Additionally, CIM Capital plans to transfer certain outlets to independent franchisees. The specific locations affected include:
Company-owned restaurants closing: Froyennes, Inno Nieuwstraat, Messancy, Sint-Denijs-Westrem, Sint-Kruis-Brugge, Wilrijk
Franchised restaurants closing: Antwerpen (Inno Meir), Arlon, Edegem, Evere, Flémalle, Ghent, Hannut, Hasselt, Libramont, Oudergem, Sint-Agatha-Berchem, Tervuren (Bistro Garden), Waterloo, Wépion
Restaurants seeking independent operators: Ans, Boncelles, Gosselies, Kortrijk (Noord), Kraainem, Olen, Rocourt, Turnhout, Waterloo Mont Saint Jean
Lunch Garden has suffered from financial difficulties due to factors such as the Covid-19 pandemic and high inflation. CIM Capital hopes to stabilise operations and focus on a sustainable future for the remaining restaurants, CEO Stephan Brouwers points out. He acknowledges the significant impact on employees and their families, but emphasises that these measures are necessary to preserve as many jobs as possible.
