Caffè Nero examines restructuring after pandemic 'decimates' trade
Monday, November 16, 2020
Caffè Nero is the latest High Street brand to issue a suggestion for a voluntary agreement (CVA), reflecting the impact of the human coronavirus pandemic on its business.
After the second closure of Caffè Nero Coffee, however, it was forced to begin a restructuring of the coffee chain's business.
According to the company's volunteer agreement, which the creditors of Caffè Nero have to support before it can enter into force, rents would in most locations of the chain be based on revenue and not on a certain level.
The CFA would 'to better manage its fixed costs moving forward'.
Caffè Nero is believed to be proposing converting the majority of its locations to sales driven rents and all store closings it must bring about will be minimal.
KPMG was given the mandate to run the CVA and creditors have until 30 November to decide on the proposals.
'Like so many businesses in the hospitality sector, the pandemic has decimated trading, 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.' Gerry Ford, founder and CEO of the chain, said.