Carluccio’s to close doors over rent costs

ITALIAN restaurant Carluccio’s, which opened in Dublin at the height of the boom, has decided to close its doors.

The restaurant made the decision following what it said was a final attempt to negotiate a revised rental agreement with its landlord. The closure means the loss of 60 jobs.

Carluccio’s operated a cafe and shop on Dawson Street.

In a statement yesterday it said: “[The] decision is the culmination of a prolonged process, beginning in December 2008, when Carluccio’s first proactively requested the landlord’s participation in a negotiation process with a view to agreeing new rental terms.

“Carluccio’s position in relation to seeking a reduction in rent is consistent with the approach of many other businesses in the current unprecedented economic environment, especially those operating in the hospitality and retail sectors.”

The company said it has been very successful in reducing its other group and operating costs, including labour.

In April last year it appointed an financial adviser to assist in advancing discussions with its landlord.

It said its closure will not only impact its 60 strong workforce but will result in the loss of business to more than 80 additional companies that supply the café and delicatessen.

The directors said they believe it is a viable business if the issue of rent can be resolved satisfactorily.

They said they remain committed to seeking a resolution to the issue of rent but are reconciled to having to cease trade in the absence of an agreement being reached.

In December 2007 Carluccio’s announced it was expanding outside Britain for the first time with the opening of an outlet in Dublin.

The all-Ireland franchise was purchased by a group of investors which included businessman Ron Bolger, chairman of the Larry Goodman-owned Irish Food Processors.