Burger chain Byron has proposed a CVA with landlords.
KPMG has been appointed to undertake the negotiations ahead of a creditors’ vote on 31 January that will need 75% support in order to be passed.
It operates from 67 leasehold restaurants across the UK – as well as having committed to nine sites that it is not operating from. Its head office is in London.
Burger chain Byron has proposed a CVA with landlords.
KPMG has been appointed to undertake the negotiations ahead of a creditors’ vote on 31 January that will need 75% support in order to be passed.
It operates from 67 leasehold restaurants across the UK – as well as having committed to nine sites that it is not operating from. Its head office is in London.
The proposed CVA will see it continue to pay the current rent for 51 stores. A further five will see proposed reductions of rent by a third. Byron is looking to reduce its rent on 20 sites to 55% for six months “while the company engages with landlords to agree the basis of any continued trading from these premises”.
Last month Hutton Collins sold a majority stake in the business to private equity firm Three Hills Capital Partners and FPP Asset Management.
Will Wright, restructuring partner at KPMG and proposed “supervisor” of the CVA, said: “Over the past ten years, Byron has grown to become a standout name within the UK’s casual dining sector.
“However, in recent times, certain parts of its portfolio have not met expectations, and with gathering economic headwinds starting to impact the sector more profoundly, the directors embarked upon a strategic review of the business as a means of safeguarding its long-term future.
“As part of this strategic review, the directors have been successful in negotiating a financial restructuring with the company’s lenders and shareholders, which will enable new investment to come into the business.
“Completion of this financial restructuring is conditional on the approval of today’s CVA proposal, which is designed to tackle the cost of the company’s leasehold obligations across its UK restaurant portfolio.
“As with similar CVAs, this arrangement seeks to strike a balance that provides a fair compromise to landlords, while allowing the viable part of the business to move forward across a smaller, more profitable core estate.
“It’s important to stress that no restaurants will close on day one, and employees, suppliers and business rates will continue to be paid on time and in full.”
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