Burger chain reprieved but 20 outlets set to close
A chain of burger restaurants is set to close 20 of its sites around the UK as it looks to stave off collapse.
Byron Hamburgers has been reprieved after its creditors approved its proposed company voluntary arrangement (CVA).
The group has 75 restaurants around the UK but in order for the core business to be saved, it is likely that the 20 restaurants under review will close.
They are: Aberdeen, Birmingham, Bristol, Camberley, Cardiff, Derby, Gateshead Metro Centre, Glasgow, Harrogate, Hoxton Square (London), Leicester, Manchester Corn Exchange, Manchester Deansgate, Spitalfields, Store Street (London), Stratford upon Avon, Wandsworth (London), Westbourne Grove (London), Windsor and Worcester.
Will Wright, restructuring partner at KPMG and joint supervisor of the CVA, said: “Today’s 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% of creditors had to vote in favour in order to pass the resolution. Today’s vote saw us secure significantly more than this majority with 99% of all voting creditors choosing to approve the CVA.”
KPMG has said that no outlets will close straight away and that employees, suppliers and business rates would continue to be paid on time and full.
Mr Wright said in December that in the previous 10 years, Byron had grown to become a stand-out name within the UK’s casual dining sector.
However, in recent times, certain parts of its portfolio had not met expectations, and with gathering economic headwinds starting to impact the sector, the Byron directors had embarked upon a strategic review of the business as a means of safeguarding its long-term future.
Byron said the CVA would substantially reduce its rental obligations and allow the company to move to a more viable business model.
It has said it will do everything possible to redeploy staff from the effected restaurants to other outlets.
The burger chain implemented a sale process in December that saw existing investor Three Hills Capital Partners become the majority shareholder. In addition, Hutton Collins agreed to sell half of its current holding in Byron to Three Hills Capital Partners and retain a significant minority interest in the business.
The proposal allowed Byron to rationalise the costs of its leasehold obligations and refocus the business on a smaller, more profitable core estate.
Byron’s struggles follow the administration last year of Birmingham-based Handmade Burger Company and of Ed’s Easy Diner, which was later bought by 2 Sisters owner Ranjit Boparan.
