The Restaurant Group confirms 125 site closures
The CVA will relate principally to its Frankie and Benny’s sites, but will have no impact on the group’s Wagamama restaurants, airport concessions and pub operations.
The restructuring will see around 125 trading sites close, with the group looking for improved rental terms on the remaining trading estate.
Assuming the CVA is approved and successfully implemented this will leave around 160 sites. The company’s announcement also said:
“The CVA will include a mechanism to exit approximately 25 previously closed leisure sites, thereby reducing the existing onerous lease provision held on the group balance sheet.”
TRG said the CVA will not seek to compromise claims of any creditors other than certain landlords and inter-company liabilities. It stressed the rights and entitlements of all trade suppliers, HMRC and employees will not be affected by the proposals.
CEO Andy Hornby said:
“The issues facing our sector are well documented and we have already taken decisive action to improve our liquidity, reduce our cost base and downsize our operations. The proposed CVA will deliver an appropriately-sized estate for our leisure business to ensure we are well positioned despite the very challenging market conditionals facing the casual dining sector.”
The nominees for the CVA will be Clare Kennedy, Peter Saville and Catherine Williamson of AlixPartners LLP.
The attendant creditors’ meeting in respect of TRG UK Ltd is scheduled for 29 June 2020.