Gusto CVA approved

Gusto Italian has completed a company voluntary arrangement (CVA) process which has secured more than 600 jobs but will see four sites close.

The proposals were supported by the majority of creditors, with 98% voting in favour. As a consequence of the restructuring, the group's restaurants in York, Lytham, Leamington Spa and Mere Green in the West Midlands will close permanently with the loss of 105 jobs.

Gusto has been able to redeploy 40 members of the team to alternate restaurants and a package of support for those affected has been provided.

The business said it will now be well-funded and in a strong position to resume a growth strategy when appropriate, adding that the agreements it now has in place with its landlords gives the group confidence to weather any further Covid-related challenges.

Matt Snell, chief executive of Gusto, said: "The last six months have been the most challenging in the history of our business and the wider sector. The passing of the CVA is an important milestone, securing the future of the Gusto business and protecting more than 600 jobs.

"I would like to take this opportunity to thank all of our creditors and landlords for their support through this time and our investors for their vision in supporting our business plan."

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