500 furloughed but remainder of redundancy-hit Sheffield cafe chain is in 'strong position'

The boss of a Sheffield-based cafe chain that made 340 staff redundant says the rest of the company is in a ‘strong position’ to cope with the coronavirus shutdown.
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Daniela Massarella, of Massarella Catering Group, said they were using the government’s Job Retention Scheme to furlough 500 staff and expecting to take advantage of business rate support grants at a ‘limited number’ of high street locations.

Last week, subsidiary Massarella Gelaterie, collapsed into administration with the loss of 340 jobs.

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All 32 of its outlets were in House of Fraser stores, including in Meadowhall which employed 15.

Massarella Coffee Shop, Sheffield, Meadowhall (House of Fraser).Massarella Coffee Shop, Sheffield, Meadowhall (House of Fraser).
Massarella Coffee Shop, Sheffield, Meadowhall (House of Fraser).

The Group has two other subsidiaries, with outlets three in Atkinsons department store on The Moor, a restaurant in Meadowhall, two outlets in Barnsley and a coffee shop in The Pavements shopping centre in Chesterfield.

Following the government-ordered closure of cafes and pubs last month, all 500 staff are now furloughed.

Ms Massarella said: “The Group is in a strong position to deal with the current closure of its remaining stores and is taking advantage of the governments Job Retention Scheme to support our remaining 500 employees.

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“Although we predominantly trade with store clients, we are expecting to take advantage of the business rate support grants in a limited number of our high street locations.”

The Group had put money into Massarella Gelaterie following the House of Fraser administration in 2018, she added. But it had been unable to support it with further funding when the pandemic struck and had been forced to call in administrators.

Staff wages, holiday pay and redundancy payments would be covered by the government.

The business was founded in 1864 when the family emigrated from Italy to Sheffield. It is headquartered at Thurcroft Hall, Brookhouse, Laughton, Sheffield.