Decision and Details
The Company's Board of DirectorsRestructuring of real estate leases and other arrangements at Franco Manca 2 UK Limited using a Company Voluntary Arrangement (CVA)
Inflation driven by higher prices for energy, food and other items in the UK, increases in labor costs due to the rise in the minimum wage, and the delayed recovery in profitability. Reduction of fixed costs through a review of lease terms for unprofitable stores and optimization of the store portfolio
It is currently difficult to reasonably estimate the amount of the impact on consolidated results, and the matter is under review. Any material developments will be disclosed promptly.
| Item | Details |
|---|---|
| Matter Covered | Restructuring of real estate leases and other arrangements at Franco Manca 2 UK Limited using a Company Voluntary Arrangement (CVA) |
| Decision-Making Body | The Company's Board of Directors |
| Decision Date | 16 April 2026 |
| Implementation Date | Undecided (this resolution will initiate notification of the decision-making process to creditors, and a creditors' meeting is scheduled to be held in early May 2026) |
| Amount | Total liabilities: £28,294 thousand (as of the end of March 2025) |
| Quantity / scale | FM's total liabilities: £28,294 thousand; Fulham's ownership interest: 99.7%; approval by creditors representing 75% or more of the claims by value is required at the creditors' meeting |
| Impact on Business Performance | It is currently difficult to reasonably estimate the amount of the impact on consolidated results, and the matter is under review. Any material developments will be disclosed promptly. |
| Reason | Inflation driven by higher prices for energy, food and other items in the UK, increases in labor costs due to the rise in the minimum wage, and the delayed recovery in profitability. Reduction of fixed costs through a review of lease terms for unprofitable stores and optimization of the store portfolio |
| Governing Rule | A Company Voluntary Arrangement (CVA) under UK insolvency law |
| Related previous disclosures | The medium-term management plan formulated in May 2022, and the conversion of Fulham into a subsidiary in July 2023 (title: Not disclosed) |
| Future plans | The decision-making process will be notified to creditors upon this resolution, and a creditors' meeting is scheduled to be held in early May 2026. The specific terms of the CVA are expected to be finalized as the proceedings progress. The Company will continue to consider the The Real Greek business and will disclose information as necessary once its response has been finalized. |
Items this document does not state (1)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.Labor costs in the UK have continued to rise due to inflation and increases in the minimum wage, and the recovery in profitability has been slower than expected. The Company will reduce fixed costs and improve profitability and business sustainability by reviewing the lease terms for unprofitable stores and optimizing its store portfolio.