Restaurant Group PLC - Launch of CVA for the Leisure estate
The Restaurant Group plc
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
Leisure estate restructure
Launch of "CVA" for the Leisure estate
The CVA will relate to the statutory entity "
The CVA will provide a mechanism to restructure the Leisure estate in line with the plan outlined in the Group's last market update (on the 8th
Assuming the CVA is approved and successfully implemented, this will leave a remaining trading estate in the Group's Leisure business of approximately 160 sites. The CVA will also include a mechanism to exit approximately 25 previously closed Leisure sites, thereby further reducing the existing onerous lease provision held on the Group's balance sheet.
The proposals reflect TRG's proactive approach to ensuring a long-term sustainable business for all stakeholders in the face of unprecedented disruption to the
Commenting on the announcement,
"The issues facing our sector are well documented and we have already taken decisive action to improve our liquidity, reduce our cost base and downsize our operations. The proposed CVA will deliver an appropriately-sized estate for our Leisure business to ensure we are well positioned despite the very challenging market conditions facing the casual dining sector. I would like to wholeheartedly thank all of my TRG colleagues for their continued understanding and extraordinary commitment during this unprecedented period."
"These situations are never easy, particularly now for the retail and hospitality businesses on our high streets at the sharp end of the Covid-19 pandemic. Property owners, however, need to take into consideration the impact on their investors, including the millions of people whose savings and pensions are invested in commercial property, as they vote on any CVA proposal.
Summary of CVA proposal
· A comprehensive review of the Leisure estate portfolio has identified approximately 210 trading sites that are either:
- on unfavourable lease terms;
- or, in certain cases, not expected to generate future profitable returns going forward, or;
- subject to a combination of all three above factors
Of these, approximately 125 sites have been identified for closure in the short term under the CVA proposal, with the balance of 85 sites being subject to a reduction in rental costs and revised lease terms
· There are approximately 65 Leisure trading sites which will be unaffected by the CVA
· The CVA will not seek to compromise claims of any creditors other than certain landlords, and inter-company liabilities. The rights and entitlement of all trade suppliers, HMRC and employees will not be affected by the proposals
· The CVA will be proposed by
The nominees for the CVA will be
The attendant creditors' meeting in respect of
0203 117 5001
07885 224 532 / 07709 496 125
1. A CVA, or company voluntary arrangement, is a legal process that allows a company to reach a compromise or settlement agreement with some or all of its creditors, i.e. those to whom money is owed. The majority of CVAs are structured to close stores, reduce rents and change lease terms with their landlords
2. The statutory entity "
o 13 Chiquito
o 35 Other Leisure brands (i.e. Coast to Coast, , Garfunkel's,
The statutory entity also includes 3 Concessions sites
This announcement may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements reflect TRG's current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to TRG's business, results of operations, financial position, liquidity, prospects, growth and strategies. Forward-looking statements speak only as of the date they are made. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future or are beyond TRG's control.
The person responsible for arranging the release of this announcement on behalf of TRG is
This information is provided by RNS, the news service of the
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