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Byron chewing over a sale and restructuring
Posted on Tuesday, 30 June 2020 12:49
Byron Hamburgers has announced the sale of the business and a restructuring plan that will ensure a sustainable long-term future for the group.
The news comes after Sky News reported the burger chain is hoping to be taken over to avoid collapse as it is the latest restaurant group to suffer during the coronavirus pandemic.
Under the terms of the proposed transaction, which is subject to the successful completion of the reorganisation process, existing investor Three Hills Capital Partners will become the majority shareholder.
Hutton Collins will sell half of its current holding in Byron to Three Hills Capital Partners and will retain a significant minority interest in the business.
The proposal allows the group to rationalise the costs of its leasehold obligations and refocus the companyon a smaller, more profitable core estate.
Byron, as part of the company voluntary arrangement (CVA), will be able to continue operating while it redeploys investment in the core business to drive share and growth.
It has submitted a comprehensive operational restructuring plan to its creditors and will solicit from the CVA over the next 21 days.
Should the agreement be approved, it will substantially reduce Byron’s rental obligations and allow the business to move to a more viable business model.
In the event of closures, the company, which has 1,200 employees and was founded in 2007, plans to do everything possible to redeploy staff to other locations.
According to the latest financial statements on Companies House, Byron posted an operating loss of GBP 45.90 million in the year ended 24th June 2018, compared to a loss of GBP 54.50 million in the previous 12 months.
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