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 preperation for the launch of a restructuring deal, involving a CVA, which could result in permenant 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.