Gourmet Burger Kitchen’s (GBK) CVA proposals were approved by “an overwhelming majority”, at a meeting of unsecured creditors earlier today.
The chain forward proposals for a restructure its UK restaurant estate as part of its ongoing turnaround strategy, last month.
Under the terms of the CVA GBK has earmarked 17 of its restaurants for potential closure, which would impact c250 staff, however the company said every effort will be made to relocate them. Its other 68 restaurants would continue to trade as normal.
Derrian Nadauld, managing director, Gourmet Burger Kitchen, said: “We’d like to thank the landlord community, our trade suppliers and our restaurant teams for their support through a challenging process.
“With the positive vote on our proposal to restructure our property portfolio, we are now able to execute the final stage of our turnaround plan, which we are confident will position the business for long term sustainable growth.”
Following the results of the vote today GBK’s parent company, South African-listed Famous Brands has withdrawn its earlier cautionary statement.
It said that proposals had been approved by the requisite majorities of the unsecured creditors of GBK present at the meeting, or by proxy.
Unsecured creditors now have a 28-day period from the date of lodging the result with authorities in which to which to apply to court to challenge the CVA proposals. The result is expected to be lodged with the authorities on Monday 12 November 2018.
