Number of Byron restaurants to close as creditors approve CVA
Byron Hamburgers has announced the closure of a "number" of its restaurants over the coming months following the approval of a Company Voluntary Agreement (CVA).
Byron said the agreement was "overwhelmingly approved" by creditors, with 99% voting in favour.
Simon Cope, CEO of Byron, said the company would do "everything possible to redeploy staff to other sites and initiatives".
The move has seen private equity company Hutton Collins, which paid £100m for Byron in 2013 and also owns Wagamama, sell half its current holding in the company to existing investor Three Hills Capital Partners, leaving Three Hills as the majority shareholder.
Cope added: "With the support of our new owners, Three Hills Capital, I'm confident that a new Byron can begin to take shape. Byron's brand and offer remains strong and distinctive, and with a smaller and more efficient restaurant estate we can continue to provide an outstanding burger experience for our customers and to develop and grow a sustainable and innovative business for the long term."
Will Wright, restructuring partner at KPMG and joint supervisor of the CVA, said: "Today's creditor vote in favour of the CVA proposal will allow Byron to conclude its previously negotiated financial restructuring and is a key step in the directors' turnaround plan. As with all CVAs, more than 75% of creditors had to vote in favour in order to pass the resolution. Today's vote saw us secure significantly more than this majority with 99% of all voting creditors choosing to approve the CVA."
Earlier in the month, Byron identified 25 sites for reduced rent, which will be paid for six months while the company engages with landlords to agree the basis of any continued trading.
Byron opened its first restaurant in 2007. It currently operates from 67 leasehold restaurants across the UK following the closure of several under-performing sites last year, including its restaurants at Manchester's Corn Exchange and the Metrocentre in Gateshead.
Byron could close dozens of restaurants under CVA plans >>
Byron owner considers sale amid casual dining headwinds >>
Simon Cope appointed CEO of Byron >>
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