Itsu proposes CVA rent cuts
Casual dining chain itsu is preparing to undertake a company voluntary arrangement, which proposes rent cuts at 53 of its 77 locations.
Two outlets would close as part of the process, which is overseen by advisers at AlixPartners.
Creditors will vote on the CVA proposals on 19 August.
Casual dining chain itsu is preparing to undertake a company voluntary arrangement, which proposes rent cuts at 53 of its 77 locations.
Two outlets would close as part of the process, which is overseen by advisers at AlixPartners.
Creditors will vote on the CVA proposals on 19 August.
Itsu reiterated that the business itself is not up for sale or seeking new investment.
It added that it does not expect to make any large-scale redundancies.
The company said a CVA was one of many actions it was taking to “adapt its model to meet the new operating environment”.
This includes a new “streamlined” menu, investing in self-service kiosks and advanced digital technology for easier pre-ordering.
Itsu said it has also created a new store concept that will “open up more trading opportunities for the UK and overseas market”.
A spokesman for itsu said: “Throughout the Covid-19 crisis, itsu has sought ways to mitigate the impact of the pandemic on its business, both in the short and long term. Following extensive consultation with advisers, it is clear a CVA offers the best solution to support a viable company going forward.
“Until the crisis struck in March this year, itsu was on track to enjoy record sales and growth. However, the unavoidable combination of months of zero trade and ongoing social distancing will significantly affect 2020/2021 and beyond. City centres and financial districts are also certain to change with businesses incorporating more regular home working by staff.”
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