CDG in restructuring talks

Causal Dining Group is in talks with advisory firm Alixpartners about a financial restructuring to secure the business through the coronavirus crisis.

The group is expected to announce that it is looking at a range of financing options later this week, though a definitive restructuring plan will not be unveiled, MCA understands.

Prior to the coronavirus lockdown, the group was performing well across all its major brands – Bella Italia, Café Rouge and Las Iguanas – although it is now understood that all options, including CVAs, site closures, and administration, are on the table.

Any processes being considered by the business are intended to protect the majority of sites and jobs and look at maintaining a sustainable business for the challenging 12-18 months ahead.

The notice of intent to appoint administrators gives the group ten days to put a restructuring plan into place.

A spokesman for Casual Dining Group said: “As is widely acknowledged, this is an unprecedented situation for our industry and, like many other companies across the UK, the Directors of Casual Dining Group are working closely with our advisors as we consider our next steps.”

The business is not the first to follow this route in response to the coronavirus crisis. 

Earlier this month, The Azzurri Group and Prezzo announced they were seeking advice on how to navigate the current climate, and burger concept Byron has started contacting potential buyers after hiring KPMG to explore its financial options in March.