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Byron may close some outlets as part of a restructuring

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Burger chain Byron could close up to 20 restaurants as part of a financial rescue proposal.Accountancy firm KPMG, which is handling the restructuring, confirmed the plan, which would also involve cutting rent payments at other outlets.Any deal would need approval from Byron’s creditors, with a vote expected to be called later this month.Byron, which has more than 70 outlets, is one of several chains that took the burger restaurant upmarket.KPMG said no restaurants would close immediately under the restructuring plan, and that employees, suppliers and business rates will continue to be paid on time and in full.The restructuring would be carried out under a so-called company voluntary arrangement (CVA).Will Wright, restructuring partner at KPMG, said: “Over the last 10 years, Byron has grown to become a stand-out name within the UK’s casual dining sector.”However, in recent times, certain parts of its portfolio have not met expectations, and with gathering economic headwinds starting to impact the sector more profoundly, the directors embarked upon a strategic review of the business as a means of safeguarding its long-term future.”Completion of this financial restructuring…. is designed to tackle the cost of the company’s leasehold obligations across its UK restaurant portfolio.”As with similar CVAs, this arrangement seeks to strike a balance which provides a fair compromise to landlords, while allowing the viable part of the business to move forward across a smaller, more profitable core estate.”
Source: BBC News

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