10 June 2021
Following a creditors meeting on June 2nd, Drake & Morgan will enter a CVA. 90% of its creditors approved the proposals.
The outcome will be closure of three of the groups 22 bars and restaurants; The Allegory (London), The Listing (London) and The Refinery (Manchester). Those who work within these sites will be offered alternate roles in the company - or so it is said at the moment.
Founder, MacLean shared that this approval is positive and means the group can look ahead to future growth and begin rebuilding the business on a more suitable financial position.
13 May 2021
Drake & Morgan, the London-based bar and restaurant group backed by Bowmark Capital, is planning to enter a company voluntary arrangement (CVA). This follows a review that concluded that the lockdowns left the current business unsustainable. The proposal seeks the support of landlords and other creditors.
It will, however, lead to the closure of three of the group’s 22 bars and restaurants. All team members in affected sites will be offered alternative roles within the company. Founder and chief executive Jillian MacLean said: “We started last year as a profitable and growing business and, in common with the rest of the hospitality industry, have been significantly affected by repeated lockdowns and tier restrictions. This course of action, if approved, will safeguard the future of the group and give it the breathing space it needs to recover. We would like to thank all our stakeholders for their support during this challenging period. We have started to welcome our customers back to our bars and restaurants, and we’re fortunate to have a number of large terraces that are in demand. We have spent the past year developing our teams and innovating our product, and we are now looking to the future.”
Drake & Morgan has appointed two partners of Deloitte to advise on the CVA. Gavin Maher, a partner at Deloitte, said: “The CVA will allow flexibility in this period of uncertain trading by moving to a predominantly turnover-based rent model for its duration. Drake & Morgan was a successful business prior to covid-19 and this action will enable the business to emerge strongly from the pandemic.”
Categories: What is a CVA or Company voluntary arrangement?