Caffè Nero founder Gerry Ford has pledged a £5m ‘survival fund’ to see the struggling coffee chain through its financial restructuring, Sky News reports.
Earlier this week, the group approved its proposed company voluntary arrangement (CVA), including a modification that the company will ensure compromised creditors, including landlords, will have their arrears paid in full in the event that a sale of the group to a third party occurs within the next six months.
In excess of 90% of creditors voted in favour of the proposal, after the business rejected a last-minute takeover bid from petrol forecourt operator EG Group.
As part of the EG offer, landlords were promised owed rent arrears in full, and lawyers for EG have since written to Caffè Nero’s parent company to warn of the likelihood of a landlord rebellion against the CVA.
“As part of the CVA, shareholders committed to making a £5m standby fund available to the business if a CVA was approved, in case additional liquidity was needed,” a Caffè Nero spokesman said.
“The fund, if required, would help ensure the survival of the business and protect creditors until more normal trading conditions prevail where they will benefit from the agreed turnover-based rent structure.”
Precis
Caffè Nero founder pledges £5m ‘survival fund’ to see it through CVA
Caffè Nero founder Gerry Ford has pledged a £5m ‘survival fund’ to see the struggling coffee chain through its financial restructuring, Sky News reports. Earlier this week, the group approved its proposed company voluntary arrangement (CVA), including a modification that the company will ensure compromised creditors, including landlords, will have their arrears paid in full in the event that a sale of the group to a third party occurs within the next six months.“ As part of the CVA, shareholders committed to making a £5m standby fund available to the business if a CVA was approved, in case additional liquidity was needed,” a Caffè Nero spokesman said.
