Food and drink industry - case study
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Food and drink industry - case study
Categorised Landlord based Company Voluntary Arrangement for high street café and fast food outlet chain
- Sector – Food and Drink
- Debt - £5m
- Turnover - £5m
- Number of employees – 70
Situation
High street café chain and fast food outlet with strong regional brand and customer loyalty. Impacted by Covid-19 and the cashflow drain of 4 non-performing stores following national rollout and expansion.
Approach
We were appointed to advise the Group on the options available and worked closely with management to prepare a CVA that dealt with:
- Categorisation of Landlord creditors;
- Closure and exit of 4 “out of region” and unviable stores;
- Rent reductions and a medium term exit for one break-even store;
- Monthly rentals over 2 years for remaining portfolio;
- All other creditors paid at 100p in the £.
Impact
Strong creditor engagement and communication with Landlords. CVA successfully approved with 100% creditor support and lending facilities restructured.
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