The Ed’s Easy Diner chain has been sold after collapsing into administration – but 26 diners will close immediately including the one in Chester.
The diner at Cheshire Oaks in Ellesmere Port will stay open as it was among 33 bought by Giraffe Concepts.
Giraffe says the deal, which will also see it take control of the chain’s head office, has saved 700 jobs.
But our sister paper the Echo in Liverpool is reporting the remaining 26 diners, including one in Chester, will close immediately with the loss of 379 jobs.
The Chester diner first opened in Grosvenor Shopping Centre in August 2015 but has only been opening until 6pm on Mondays-Saturdays and 5pm on Sundays, when the centre closes.
Administrators from accountancy giant KPMG were called in to three of the companies behind the chain – Ed’s Easy Diner Group, Ed’s Easy Diner Holdings and Ed’s Easy Diner Overseas – after they suffered cashflow difficulties. The chain had recently been hunting for new investment.
KPMG then immediately carried out a “pre-packaged sale of the business and certain of its assets” to Giraffe.
Pre-packaged deals are normally arranged ahead of a formal administration or insolvency process to ensure a business can carry on.
Joint administrator Rob Croxen said: “While we are pleased the transaction preserves around 700 jobs, our immediate priority in the coming days will be to liaise with those employees who have been affected by redundancy and ensure that in addition to receiving all back pay owed, they are provided with any assistance they need.”