Lord Sugar’s private commercial property group, Amsprop Investments, has lodged a legal challenge against Caffe Nero’s company voluntary arrangement (CVA), Sky News reports.

Amsprop is one of seven parties which is objecting to the restructuring, part of a landlord-led revolt against the deal.

Under the plans tabled by Caffe Nero’s controlling shareholder and founder Gerry Ford, landlords would forfeit most of their outstanding rent payments.

However as part of a separate takeover proposal by EG Group, landlords were promised full payment of rent arrears.

EG founders Mohsin and Zuber Issa are understood to be underwriting the cost of the legal challenge to the CVA.

The involvement of Lord Sugar’s group was confirmed by a spokesman for the tycoon.

Caffe Nero’s CVA was approved by creditors last month, and will be implemented unless the challenge is successful.

A Caffe Nero spokesman said: “We are aware a challenge has been filed by a small number of landlords at what appears to be the instigation of a third party.

“We still firmly believe the terms of the CVA, which passed with over 90% support, are in the best interests of all our creditors and we will openly engage with any landlord who wishes to discuss it further.

“We intend to defend the challenge vigorously.

“In the meantime, we remain focussed on managing the business through the current Covid-19 enforced trading restrictions, and re-growing our sales in the months and years ahead.”

As part of the CVA, Ford has pledged £5m to a ‘survival fund’ aimed at withstanding any renewed escalation of the coronavirus crisis as it braces itself for a legal challenge from landlords.