Caffe Nero lenders prepare for CVA
Alcentra and Partners Group, which reportedly provides mezzanine debt to Caffe Nero, has called in financial advisers as the company prepares for a CVA that could potentially lead to permanent store closures and job losses.
According to Sky News, Alcentra has requested FTI Consulting to join them in discussions regarding the implications of a CVA, with one source revealing that while a final decision on a CVA had yet to be confirmed it was likely to be announced by the end of November.
In September, the hot drinks outlet appointed KPMG to negotiate high street rent cuts with landlords, with the big-four firm continuing to work with the brand throughout its restructuring process.
The business, which employs an estimated 5,000 people, is one of the many coffee chains to be impacted by the reduced footfall on the UK highstreet, last month rival chain Pret A Manger was forced to 400 members of staff redundant and shutter six branches.
In September a spokesperson for Caffe Nero told Sky: It has been a difficult period since lockdown measures were introduced by the government and we’re working incredibly hard to navigate our way forward.”
“we are working closely with advisors to help review our options and assist with our ongoing negotiations with landlords.”
Catering today has contacted Caffe Nero for a comment.
