GBK Gourmet Burger Kitchen is cutting 362 jobs and 26 restaurants

Gourmet Burger Kitchen is to slash 362 positions despite bailout from Boparan Restaurant Group.

GBK said it, which was owned by the South African group Famous Brands, had seen improvements in trade over the past year after a big reorganisation in 2018, which saw several sites closed.

However, the company, which was owned by South African group Famous Brands, said it may have entered administration after the pandemic hampered its liquidity and its potential to be sold as a solvent company.

"As with a number of dining businesses, the broader challenges facing "bricks and mortar" - Gavin Maher

Gavin Maher, co-administrator of Deloitte, said: "As with a string of restaurants, the greater challenges faced by stationary operators, together with the impact of the closure have resulted in a deterioration in financial performance and material funding needs.

The new addition to Boparan's restaurant, owned by the 'chicken king', Ranjit Boparan, and in other areas including the Giraffe and Ed's Easy Diner Chains, is expected to be completed in the next year.

The deal follows a succession of administrations, closures and sales of its restaurants offering casual dining services.