Investment firm CIM Capital has agreed to a relaunch of the Lunch Garden restaurant chain.
Of the 62 locations, 41 can reopen and roughly half of the employees can return to work, Lunch Garden announced on Wednesday. The exact date for the reopening is still unknown.
The restaurant chain will continue with a more agile structure and will be free of its historical debts, according to a press release.
Out of the 41 restaurants, 24 will be company-operated, while 17 will be managed by independent operators. Approximately 430 employees will be able to work again in both company-owned and franchisee restaurants.
The restaurants are expected to open any day now, but an exact date is not yet confirmed. Managers and staff need to be informed and supply chains re-established.
Lunch Garden declared bankruptcy on Monday, but efforts to relaunch were immediately underway. The chain had 600 employees and about 200 more at independent restaurants before the bankruptcy.
"We strongly believe in Lunch Garden’s future," said Erik Verkest, CEO of CCR Fund and partner at CIM Capital. "It is a brand with a rich history in Belgium and a strong bond with its customers."
CIM Capital is an Antwerp-based investor co-founded by Marc Van Hool, a member of the bus manufacturing Van Hool family. The firm has experience rescuing struggling companies, having previously relaunched travel operator Neckermann and fashion chain Veritas.
"The discussions with CIM were constructive from the beginning," said Stephan Brouwers, CEO of Lunch Garden. "Together, we analysed the current situation and planned a sustainable future with a more agile structure." He also thanked customers for their "heartwarming reactions" over the past few days.
Curator Stijn Vanschoubroek highlighted the benefits of the private bankruptcy process, which allowed discreet market assessments aimed at business continuity and preserving as many jobs as possible. He hopes other opportunities will arise for the restaurants not included in the relaunch.
The Christian union is pleased about the continuation of the business but laments that half of the workforce has been sacrificed and is concerned about the working conditions of the remaining staff.
"How will those who have worked here for 20 or 30 years react to having to adapt to maximum flexibility?" questioned Sandra Antenucci, permanent secretary.
The restaurants reopening include: Ans, Bomerée, Bergen, Bierges, Boncelles, Borsbeek, Brugge B-Park, Couillet, Doornik Bastions, Drogenbos, Eupen, Fléron, Haine-St.-Pierre, Genk, Gosselies, Herstal, Imelda Brasserie, Jambes, Jemappes, Jumet, Korbeek-Lo, Kraainem, Kuringen, Lier, Marche, Nijvel, Ninove, Oostakker, Rocourt, Schoten, Sint-Maarten Brasserie, St. Eloois, Ternat, Tienen, Turnhout, Waterloo, Webbekom, Wépion, Wijnegem, Zemst, and Zinnik.
