CAFFE Nero is the latest high street name to be forced into insolvency by the coronavirus pandemic and the second lockdown.
A CVA is a procedure that allows companies to continue trading while allowing a proportion of its debts to be paid back over time.
It is “the best rescue tool for a company that is viable going forward but is burdened by historic debt”, according to Company Rescue.
Gerry Ford, Caffè Nero’s founder, said the second lockdown in England urged the company to act quickly after profits declined.
Mr Ford said, “With our dine-in facilities now closed for a second time, we have little option but to launch this CVA to safeguard the future of our business.”
“And although we had made significant progress in navigating the financial challenges of the first lockdown, the second lockdown has made it imperative that we take further action.”
He also said the company’s chain was to continue to protect jobs.
Will Wright, head of regional restructuring at KPMG, said, “Caffe Nero is an iconic brand on the UK’s high streets with a terrifically loyal customer base.
“However, like many others across the sector, the impact of measures introduced in response to the Covid-19 pandemic has been devastating.”
The company hopes to get its finances in order, reduce its rent liabilities and exit loss-making stores.
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