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Restructuring Experts called in for Cafe Rouge. Could a CVA result?

5 November 2018

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Restructuring Experts called in for Cafe Rouge. Could a CVA result?

Casual Dining Group, owners of Café Rouge, Bella Italia and Las Iguanas have hired Alvarez & Marsal.

The restructuring specialists have been hired to aid the chain with negotiating lower rents from landlords.

A spokesperson for the company said, "A small number of our sites are loss-making due to high rents and rates, and we are taking action to ensure the core business is in good shape for future growth. Talking to landlords is commonplace and good business practice."

In the last set of company reports, Casual Dining Group reported a £60m loss, in a ''tough operating environment''. 

The casual dining sector as a whole, has and still is being hit by rising rent, staffing costs, declining consumer confidence and changing tastes. Accountancy network, UHY Hacker Young describe how pre-tax profits at the UK's top 100 restaurants have fallen 80 per cent to £37m, over just the course of a year.

We have already seen the likes of Prezzo, Jamie's Italian and Gaucho go into CVAs - are Café Rouge next?

Categories: Hospitality, Retail

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