Tasty achieves rent reductions and concessions on more than half of estate

Wildwood operator Tasty has achieved rent reductions and lease concessions on more than half of its estate, two months after it announced it was exploring a potential company voluntary arrangement (CVA).

At the end of September, the group started negotiations with landlords and other creditors, working with advisers KPGM to assess its strategic operations going forward.

Though it hoped to have concluded negotiations by November, it has said they remain ongoing in respect to outstanding rents, and now anticipates the process will be complete in January 2021.

Currently, the company is open for dine-in, takeaway and delivery at 38 sites, with five offering takeaway and delivery only. It is expected that an additional nine sites will close for dine in as London and Essex move into tier 3 today.

“Certain restaurants within the company’s estate have remained closed due to poor trading conditions in their locality,” the business said in a trading update. “The company continues to monitor developments affecting both the open and closed restaurants in line with the continually changing UK tier restrictions.

“Trading across the business continues to be challenging with Christmas parties cancelled and the differing levels of restrictions significantly reducing the number of customers eating out and related restaurant capacity restrictions.”

In October, Tasty reported sales fell £8.7m in the 12 months to 30 October, from £21.1m in 2019, and it made a loss after tax of £11m.