Love Coffee, the 35-strong coffee chain, has been saved from collapse after creditors voted in favour of a company voluntary arrangement (CVA).
The deal was agreed on 9 December through RSM Restructuring Advisory, safeguarding hundreds of jobs.
Damian Webb and Philip Sykes from RSM will now become the supervisors of the CVA and monitor the implementation of the proposal, which was not disclosed but is likely to see landlords accept reductions in rent.
Shoosmiths provided legal advice to DJ&C Foods, which trades as Love Coffee.
The family run business, led by Vikesh Kumar Patel, employs over 200 staff across its 35 stores, the majority of which are located in shopping centres such as St David’s Centre in Cardiff, Westfield London and The Meadowhall Centre in Sheffield.
The company said trading at its sites has been hit by lower footfall and retail failures near to its stores, prompting it to seek a CVA.
Damian Webb, a restructuring partner at RSM said: “The approval of this agreement is good for all parties, it ensures the on-going trading of Love Coffee, protecting over 200 jobs and ensuring a minimum of disruption to the company’s key stakeholders. By securing a consensual restructuring with the company’s creditors we have avoided other scenarios which would have undermined returns to the company’s creditors.”
Patel, director of Love Coffee, said: “We would like to thank all of our employees, creditors and stakeholders for their support through this challenging period. The directors and management team now look forward to focussing on the future of Love Coffee and working together to make this business a success for many years to come.”
