Tasty reports losses of £11m but hopes to avoid CVA
Tasty, the operator of brands including Wildwood and Dim T, has reported post-tax losses of £11m in a trading update, but said that it hopes to avoid a company voluntary arrangement (CVA).
The group said that all options were being explored, but "with creditor assistance, a more formal procedure such as a CVA, may be avoided".
Of its 55 restaurants, 48 are open and trading. One in Wales has been closed due to the national lockdown, and there are "no immediate plans" to reopen the remaining six closed sites, which Tasty said are at risk of permanent closure.
In the group's interim results for the first six months of the year, the company reported revenue of £8.7m, significantly down on 2019 revenue of £21.1m due to the Covid-19 outbreak.
The business employs approximately 700 people and has agreed rent reductions and lease concessions on several sites. The directors expressed "a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future".
However, they conceded that the outlook for the sector remains "extremely challenging and uncertain" and. as announced last month, while no decision has been made regarding a restructure or CVA, Tasty is continuing to work with strategic advisers at KPMG to assess the impact of Covid-19 on the business and the options available.
Chairman Keith Lassman said: "While the trading environment continues to be extremely challenging and ever-changing, with the additional bank facility and support from our creditors and landlords, we are hopeful that we will be able to navigate our way through these difficult times due to our agility and restructured operational base.
"Our focus on cash preservation and maintaining the wellbeing of our staff and customers, has provided us with the opportunity to find a new way of operating the business, which is Covid-19 safe. There are opportunities to build on the stability in the group and the lower operating cost base which will allow us to take advantage of reduced competition."