01 October 2021
The High Court has dismissed an application by a landlord creditor to overturn a company voluntary arrangement (CVA) implemented by coffee shop chain Caffé Nero. The CVA, previously approved by its creditors, compromised rent arrears and reduced future rents for the company’s premises. The decision follows a series of previous high-profile challenges to retail and leisure CVAs.
22 July 2021
Young, one of the Caffe Nero’s landlords has challenged the CVA in court.
Marking the start of a four-day trial, the company said that Young, has no right to bring the challenge due to an arrangement he has with EG Group Ltd. EG is run by Mohsin and Zuber Issa, billionaire brothers who launched a takeover bid for Nero on the eve of the CVA vote.
04 January 2021
Some landlords, including Lord Sugar, are seeking to challenge Caffe Nero’s CVA. The chain had proposed landlords receive 30p for every £1 of rent they are owed, and was seeking to move most stores to a turnover-rent based model. If there are any closures these are expected to be minimal.
13 November 2020
Last night coffee chain, Caffe Nero put itself into a company voluntary arrangement.
Founder, Gerry Ford, explained that this was due to the second lockdown which has caused the chain to suffer, from limits to socialising, less shoppers in town centres and workers being told to work from home.
KPMG are working with the company on this insolvency procedure. The CVA needs to be backed by landlords and creditors to be successful.
The hope is that from doing this, rent negotiations can be made with landlords, so costs can be reduced and the company can be in a better position to rebuild itself post-pandemic.
The chain employs more than 6,000 people across its 800 UK stores. Any job losses or store closures are unknown as of yet.
6 November 2020
A group of Lenders to Caffe Nero have been reported to of drafted in FTI Consulting.
The financial advisers have been brought in by Alcentra and Partners Group, in preparation for the launch of a restructuring deal, involving a CVA, which could result in permanent store closures and job losses.
23 October 2020
Caffe Nero becomes the latest big name to look into a company voluntary arrangement.
The insolvency mechanism is being considered since the coffee shop operator has been hit from coronavirus, alike many other high street hospitality businesses. It needs to restructure its financial liabilities, reduce its rent bill and exit loss making outlets.
Details concerning the amount of shop closures or job losses are so far unclear.
KPMG are working with Caffe Nero on its options.
As it stands current, it operates from 660 UK stores, of which more than 90% have opened since the UK-wide lockdown ended in June and employs 5,000 staff.