Overgate Shopping Centre ‘in discussions’ with tenant seeking to reduce outlets

Overgate Shopping Centre in Dundee is “in discussions” with a tenant which is looking to restructure and downsize its UK operation.

The Restaurant Group confirmed today that it is examining “restructuring options”  for its Frankie & Benny’s operation.

The group has entered emergency talks with its landlords, which includes the Overgate.

Frankie & Benny’s also has premises at St Catherine’s Leisure Park in Perth, Fife Central Retail Park in Kirkcaldy and Dunfermline’s Whimbrel Place. The locations are all currently closed.

It was reported last week that a ‘large number’ of its outlets – between 100 and 120 – will remain closed after lockdown ends.

The group said: “As is widely understood our industry is facing exceptional challenges in what is an unprecedented operating environment.

“The casual dining sector was already facing significant challenges prior to the onset of Covid-19, with overcapacity and significant cost pressures.

“In order to meet both the immediate challenges and to build a post-lockdown business with a sustainable future, we are in discussions with our landlords regarding potential restructuring options for our leisure estate.”

In September last year, the company said it expected to close around half of its sites when leases come up for renewal.

In a brief statement, Malcolm Angus, the centre manager at Overgate Shopping Centre, confirmed: “We are in discussion with the retailer.”

In April, the Overgate struck a deal with Debenhams for the fashion retailer to remain in a flagship site in the centre for at least another two years.

The Restaurant Group, which also owns Garfunkel’s, is one of the largest restaurant operators in Britain. It currently has around 22,000 staff on furlough.