Hundreds of jobs are at risk as more restaurant chains launch plans to close sites.
The owners of both Giraffe and Ed's Easy Diner has announced the closure of 27 of its 87 restaurants.
The operator will now enter a company voluntary arrangement (CVA).
The business, which is owned by Boparan Restaurant Group (BRG), said although like-for-like sales had improved at the brands since they were acquired, several sites remained unprofitable.
Tom Crowley, chief executive of BRG, said: "We have been examining options for the two brands for some time and the CVA is the only option to protect the company.
"The combination of increasing costs and over-supply of restaurants in the sector and a softening of consumer demand have all contributed to the challenges both these brands face."
BRG owns a number of other household names, including fish and chip restaurant Harry Ramsden and the upmarket Cinnamon Collection.
BRG acquired Giraffe from Tesco in 2016, and later combined it with Ed's Easy Diner, which it had bought in a pre-pack administration that same year.
The two brands form a combined entity, which in the most recently available accounts had annual turnover of £67.1 million.
In the same period, underlying losses came to £1.6 million.
Last year, several casual dining brands overhauled their businesses, with some closing sites, amid rising costs and tougher competition in the sector.
Prezzo, Jamie's Italian, Byron, Carluccio's, Gaucho and Gourmet Burger Kitchen all shut.
Both brands have restaurants across SE London and N Kent.
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