RSM has confirmed it is advising on the restructuring of Fuel Juice Bars, which has already resulted in part of the group being put into administration with the closure of nine sties.
The restructuring specialists said a “deteriorating macro-economic environment” in 2016 and 2017, had put pressure on retail spending and footfall, and impacted the group’s performance.
The founder of the business, Jamie Weston returned to the business in October 2017 to address the underperformance and RSM was brought in November 2017 to advise on the restructuring.
RSM and management identified that the core Fuel Juice Bars Limited (‘FJB’) business was sustainable, but that its performance was being undermined by Fuel Juice Bars England and Wales Limited (‘E&W’), which could not be restructured, notably due to its exposure to multiple under-performing sites.
The E&W part of the business grew from the acquisition of competitor, Get Juicy Limited, which traded from four sites as Zest Juice Bars Limited.
As a result of the administration of E&W, FJB was liable for a number of cross guarantees, and to address these liabilities and assist with the restructuring of FJB, management are proposing a Company Voluntary Arrangement (CVA).
Management is working with British Property Federation on the proposed CVA with a view to protecting stakeholders such as landlords where possible.
The company is negotiating with stakeholders to secure their support for the proposal and a creditors meeting has been scheduled for Friday 22 December.
Fuel continues to trade from 27 stores across England, Wales and Scotland.