BURGER chain Byron has not yet had its chips after landlords and creditors agreed a rescue plan – but some of its sites will close.
The food firm closed its Glasgow outlet earlier this month and continues trading in Edinburgh. Its Aberdeen branch is amongst 20 given a stay of execution yesterday in a scheme which will see rents reduced for six months until new talks about their future.
Others facing uncertainty include sites in Cardiff, Manchester and London.
The company employs around 1800 people across its 76 eateries and earlier this month it emerged hundreds of these posts could go as senior management sought an agreement on restructuring.
The company voluntary arrangement (CVA) tabled by Byron received 99 per cent backing during a meeting yesterday.
Following the vote, Will Wright, KPMG restructuring partner and joint CVA supervisor, said: “The 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 per cent of creditors had to vote in favour in order to pass the resolution. The vote saw us secure significantly more than this majority with 99 per cent of all voting creditors choosing to approve the CVA.”
As part of the process linked to the restructuring, investment house Three Hills Capital Partners will become the biggest shareholder.
Simon Cope, chief executive of Byron, said he was pleased with the “strong support” from the company’s creditors.
He said: “Our landlords have been both understanding and positive throughout this process and we look forward to working proactively with them in the coming months.
“As a result of this restructuring process, a number of our restaurants will close and we will do everything possible to redeploy staff to other sites and initiatives.
“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.”
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