The creditors of burger chain Byron Hamburgers have approved its proposed company voluntary arrangement (CVA), under which it will review leases on 20 of its restaurants.
Byron’s restaurant portfolio will be divided into three categories
Source: Marco Verch/Flickr/Pixsy
Ninety-nine per cent of creditors voted in favour of the plan, surpassing the 75% necessary for it to be enacted.
Byron has 67 leasehold restaurants in the UK, as well as nine non-operational leasehold sites including its head office in London.
Under the CVA, the restaurant portfolio will be divided into three categories. On the 51 ‘category one’ sites, leases will be retained at their current rents, while on the five ‘category two’ sites Byron will pay a reduced rent equivalent to two thirds of the former amount.
For the remaining 20 ‘category three’ sites, a reduced rent equivalent to 55% will be paid for six months while the company engages with landlords to agree the basis of any continued trading from these premises.
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.”
The CVA will become effective following a shareholder meeting to be held on 1 February.