Chez Gèrard facing writedown

GROUPE Chez Gérard has braced investors for a writedown in the value of its assets and closed its Livebait restaurant in Chelsea.

Chez Gérard has been hit savagely by the downturn in London tourists since 11 September and is in the process of reviewing its chain of 27 restaurants. The loss-making Chelsea site has been axed after only 13 months. Its value has been slashed by £500,000 in the first-half accounts to be published in March. Further writedowns of the estate, valued at £22m last July, were likely, the group added.

More closures are a distinct possibility with the Livebait chain suffering particularly. Chez Gérard said total sales would be shown down on the previous year's interims but it did not go as far as issuing a profit warning. As well as facing poor trading in its London home territory, the company has had its fingers burnt at new sites in the provinces.