Byron, the struggling better burger chain, has struck a rescue deal that could lead to the closure of a big chunk of its restaurant estate next year, Sky News reports
Sky News has reported that shareholders in Byron have agreed a transaction under which Three Hills Capital Partners (THCP) will become its majority shareholder by acquiring part of the stake held by Hutton Collins.
FPP Asset Management will become a new investor in the business, which has been suffering amid rising costs and a downturn in trading at many of its sites.
It is thought that the two new investment groups will inject new funds into Byron to fund future plans.
The report says that the deal will pave the way for the closure of some of Byron’s restaurants, with a company voluntary arrangement (CVA) likely to be considered early next year. MCA understands that the group’s tail of c19 sites was losing c£1.5m EBITDA between them.
Sources said the entire deal was contingent upon the successful restructuring of Byron’s estate.
Byron decline to comment on the report
Earlier this week, MCA reported that RCapital, the former owner of Little Chef, and Boparan Restaurant Group (BRG), the owner of Giraffe and Ed’s Easy Diner, had both distanced themselves from the sales process for Byron.
Representatives from both companies told MCA that although they had run the rule over the business, neither had taken that interest any further.
MCA understands that Santander, Byron’s banking partner, was in control of the process, which is being led by KPMG, with the c65-strong business valued at between £15m-£25m.
It is thought that any successful bidder would have to consider jettisoning around third of the Hutton Collins-backed group’s current estate.
Luke Johnson and Endless had also been linked with showing an interest in the chain, which Hutton Collins acquired for c£100m in October 2013.