Coronavirus: 6,000 jobs at risk at Cafe Rouge and Bella Italia owner

Must read

Boris Johnson says £200m royal yacht will let UK ‘show itself off to the world’

Boris Johnson has denied his plan to spend more than £200m on a new royal yacht is a waste of money – claiming it...

House prices at new high as buyers seek more space

Strong demand for houses will last into 2022 as buyers react to the pandemic, says property website Zoopla. Credit: Source link

Google Pixel XE Release Date, Price & Specs Rumours

With images leaking online, Google may be planning to release a new Pixel phone that goes by the name of the Pixel XE -...

Britain is 6% wetter than three decades ago, says Met Office

Britain’s last 30 years have been 6 per cent wetter and almost 1C hotter than the preceding three decades, the Met Office says.Its annual...
StudentObserverhttp://www.studentobserver.co.uk
This is an online news portal that aims to share latest news about these topics "news, business, health, sports, technology " and much more stuff like that. Feel free to get in touch with us!

Image copyright
Casual Dining Group

The owner of High Street restaurant chains Cafe Rouge and Bella Italia has filed intent to appoint administrators at the High Court.

Owner Casual Dining Group, whose brands also include the Las Iguanas chain, employs about 6,000 people.

The company said the move would give it ten days breathing space to consider “all options” for restructuring.

Restaurants have been hit hard after shutting their doors in March as part of Britain’s virus lockdown.

Earlier on Monday, Casual Dining Group said that it is working with advisers from corporate finance firm AlixPartners over a potential restructuring programme.

A Casual Dining Group spokeswoman said: “As is widely acknowledged, this is an unprecedented situation for our industry and, like many other companies across the UK, the directors of Casual Dining Group are working closely with our advisers as we consider our next steps.

“These notifications are a prudent measure in light of the company’s position and the wider situation.”

Breathing space

The firm said the move would protect it from any threatened legal action from landlords.

The notice of intent to appoint administrators gives the firm ten days to put a restructuring plan into place.

After that ten days is up, the firm could let the notice lapse, if there is a viable restructuring plan.

But if there is no feasible restructuring plan, the firm must either ask for another ten days to come up with one, or it could appoint administrators for the business.

The restructuring plan could involve so-called “company voluntary arrangements” (CVAs), which allow a firm to keep trading while reducing rents. It could also see one or more of the firms’ brands put into administration.

The UK’s casual dining chains had a tough few years even before the coronavirus pandemic arrived.

Many struggled with a raft of increasing costs, including upwards-only rent reviews, business rates, a rising minimum wage and the apprenticeship levy.

A rise in the cost of imported food following the sharp drop in the value of the pound amid Brexit uncertainty was another pressure point.

Some well-known names, including Jamie Oliver’s restaurant empire, the burger chain Byron, and the Chiquito and Frankie & Benny’s owner have either closed sites or had to put in place emergency financial measures.

Credit: Source link

- Advertisement -

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Latest article

Government makes NHS Covid app less sensitive following ‘pingdemic’ concerns

The government has moved to make the NHS Covid app less sensitive following concerns that it has been telling too many people to self-isolate.In...

Covid: NHS app in England and Wales tweaked to notify fewer contacts

The app in England and Wales will now only alert contacts from the previous two days in asymptomatic cases. Credit: Source link

West Midlands Police officer convicted of assaults

The police watchdog says there is no evidence to support complaints the attacks were racially driven. Credit: Source link

Get £200 Worth of Apps and Entertainment with New Samsung TVs

If you’re looking to buy a new TV this year, then Samsung has an offer which might just tempt you to pick one of...