GBK ‘appoints restructuring advisors’ prompting CVA suspicions

Burger chain Gourmet Burger Kitchen (GBK) has reported appointed restructuring advisors Deloitte leading to suspicions that the company could be set to enter a company voluntary arrangement (CVA).

According to The Times, Deloitte is seeking rent reductions and site closures for the chain which recently reported a loss of £2.24m in the 22 weeks to 29 July 2018. Its like-for-like sales were also down by 10.6%.

If the chain does agree to a CVA, it will follow a line of major high street restaurant chains which have entered CVAs in 2018, including Prezzo, Byron and Jamie’s Italian.

The chain’s parent company, Famous Brands, issued a statement on 17 August which said: “Famous Brands is giving consideration to strategic options relating to a subsidiary that may

have a material impact on the price of the company’s share price. Shareholders are requested to exercise caution when dealing in the company’s shares.”

Catering Today has contacted Deloitte for comment.