It is understood that high street coffee chain, Caffe Nero, is the latest to look into rent cuts from its landlords in order to allow itself to recover from COVID-19 which has caused devastation to the hospitality sector.
KPMG has been appointed to help the chain assess its options which include mechanisms to cut rents and close stores. Could a CVA, known to help struggling businesses cut rents and close stores, be likely?
Caffe Nero has 660 UK stores, with almost all of its outlets, minus 30, reopening since the coronavirus lockdown ended in June.
Before Coronavirus hit, 135 million customers were served annually and the chain had around 5000 employees. As with others in the hospitality sector, the unprecedented virus and lockdown has had a massive impact.
A source close to the company has said that exectuvies have been engaging in ‘’constructive dialogue’’ with landlords but needed talks to intensify as the company seeks to address its fixed cost base.
Sky News report more.