Lunch Garden's bankruptcy threatens Belgian job market stability
The Belgian restaurant chain Lunch Garden has officially declared bankruptcy. The new owner, investment fund CIM Capital, decided to take over 42 out of 62 restaurants, providing a chance to preserve about half of the 600 jobs in the chain.
According to the portal retail detail.eu, the Belgian Lunch Garden restaurant chain has been officially declared bankrupt by the commercial court in Brussels. The investment fund CIM Capital will become the new shareholder.
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 of the 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 emphasised 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. As we wrote in 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 £580,000 and a turnover of £34 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.
