Lunch Garden is filing for bankruptcy, but the restaurant chain has hopes of a relaunch involving 42 of its 62 restaurants. The relaunch should be possible thanks to fresh capital from a new shareholder: CIM Capital. The management announced the news at a special works council at Lunch Garden's headquarters in Evere this morning.
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Lunch Garden files for bankruptcy, plans restart with 42 restaurants
Colin Clapson
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The unions received confirmation of what had already become known in recent days: Lunch Garden is filing for bankruptcy that will be followed by a partial takeover by CIM Capital.
‘This is a particularly tough decision, but it is the only way to build a sustainable future and keep as many jobs as possible,’ says Stephan Brouwers, Lunch Garden's CEO.
Rough times
The restaurant chain, which operates 62 restaurants, speaks of the ‘challenging’ years behind it. Mandatory closures during the corona pandemic had a ‘profound financial impact that is still being felt’.
The performance of a number of branches had a negative impact on the entire chain, and costs rose due to high inflation and index-related wage and price increases.
Over 800 people worked at the company at the end of 2023, compared to 1,100 in 2020.
Fresh cash on the way
While there was ‘a positive trend in sales and operating profits’ over the past 2 years, ‘it proved insufficient to support the necessary investments’, Lunch Garden says. As a result, shareholder ICG had to keep injecting money, and that was no longer sustainable. In consequence the company has now filed for bankruptcy.
Fresh capital has now been found: from the Antwerp-based investment company CIM Capital. CIM Capital was founded a decade ago by Marc Van Hool, a scion of the family that owned the Van Hool bus and trailer manufacturer that went bankrupt last year. His investment fund specialises in taking struggling companies out of the doldrums.
With CIM Capital’s help, Lunch Garden hopes to restart as soon as possible. ‘With a new shareholding to further strengthen Lunch Garden and secure its future,’ said CEO Brouwers.