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Pre-pack deal brings restaurant chain Fazenda out of administration

3 March 2021

Pre-pack deal brings restaurant chain Fazenda out of administration

Yorkshire based restaurant chain, Fazenda, has been saved.

City District limited, which trades as Fazenda Rodizio Bar & Grill as well as Picanha by Fazenda, called in administrators, Begbies Traynor, just on Monday. Now a substantial amount of the business and its assets have been rescued in a pre-pack deal with Southern Wind Group Limited.

More than 240 jobs have been rescued as a result.

The restaurant chain has suffered from Covid-19 and the impact the seemingly everlasting lockdowns and restrictions have had, specifically on the hospitality industry. HMRC and landlord arrears mounted and there was need for additional funding to satisfy all.

Under the per-pack the new company will continue trading as Fazenda, keeping the Leeds, Manchester, Edinburgh and Liverpool sites. The e-commerce arm, ‘Fazenda at Home’, newly launched and allowing customers to purchase quality meats and buy prepare-at-home meal kits, is included in the deal. Southern Wind Group Limited will honour any previously issued gift cards of the restaurants.

The Fazenda Birmingham and Picanha Chester sites are not included, making 69 staff redundant.

Julian Pitts, joint administrator at Begbies Traynor remarked: ‘’After more than 10 years of healthy trading, the Fazenda restaurant chain became yet another casualty of the impact of the pandemic on the hospitality sector. With the UK undergoing multiple lockdowns, together with social distancing measures and increased working from home, the restaurant trade has faced one of its toughest periods ever. It is good news for employees, customers and suppliers that most of the popular Fazenda eateries will re-open for business once the current restrictions are lifted. We wish them well for the future.”

Managing Director of the chain, Tomas Maunier appears optimistic about the deal, saying: ’’The hardest part is that we were unable to retain the whole team, though we are extremely proud to have secured over 200 jobs in the process. Despite the closures, we believe the long-term future is looking bright for both the industry and brand, and we are looking forward to resuming operations across our other sites in May’’.

Categories: Administration, Pre Pack Administration Process and Procedures

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