Tasty, the parent company of Wildwood and Dim T restaurants, has announced a major restructuring plan that will see 18 of its branches close.
The decision comes after a “challenging” start to the year, with the firm planning to axe around 20 loss-making restaurants – two of which have already been closed to customers.
Currently, Tasty operates 43 Wildwoods, six Dim-T pan-Asian restaurants, two non-trading sites, and three sub-let venues, though it plans to have just 30 restaurants left by the end of 2024.
However, the company’s financial performance continues to be hampered by underperforming sites, as a spokesperson explained: “The use of a restructuring plan is considered the most effective means to reorganise the group to return it to profitability and secure its long-term future which should change the financial viability, profitability profile and long-term prospects of the group.”
The locations of the exact sites earmarked for closure have not yet been confirmed, though dozens are at risk.
The company, Tasty also announced it will enter into a new £750,000 loan agreement with Bet365 shareholder Will Roseff in order to fund the restructuring.
Bosses said they expect the plan will improve earnings by up to £2.1million by the 2025 financial year, largely through the restaurant closures and other cost savings.
The proposals are to be put to Tasty’s creditors before a court hearing expected later this month.
On Tuesday, Tasty added that it expects to confirm revenues of around £46.9million for 2023, up from £44million in 2022. Despite challenging trading conditions, the group has stated that it has made “reasonable progress” so far this year.
