Byron announces sale in bid to save the business
It includes a restructuring plan that will ensure a sustainable long-term future for Byron.
Under the terms of the transaction, which is subject to the successful completion of the reorganisation process, existing investor Three Hills Capital Partners becomes the majority shareholder. Hutton Collins will sell half of its current holding in Byron to Three Hills Capital Partners and will retain a significant minority interest in the business.
The proposal allows Byron to rationalise the costs of its leasehold obligations and refocus the business on a smaller, more profitable core estate. This business model will be more suitable to the current economic headwinds affecting the sector, whilst continuing to meet Byron’s obligations to suppliers and creditors.
This proposed restructuring, under the terms of a Company Voluntary Arrangement (“CVA”), will allow Byron to continue operating while it redeploys investment in the core business to drive share and growth.
Under the CVA process, Byron has submitted a comprehensive operational restructuring plan to its creditors and will solicit their approval of the CVA over the next 21 days. If approved by the creditors, the CVA proposal will substantially reduce Byron’s rental obligations and allow the business to move to a more viable business model. In the event of closures, we will do everything possible to redeploy staff to other stores and other initiatives.
CEO of Bryon Simon Cope said, “Byron’s core restaurant business and brand remain strong but the market that we operate in has changed profoundly. In order to continue serving our loyal customer base, we need to make some critical and difficult changes to the size and shape of our estate.
“With the support of our new owners, our creditors, landlords and other business partners, I’m confident Byron will able to continue providing our consumers with the best burger experience. The teams in our restaurants are always such an inspiration and we will work hard to support them throughout this difficult process.”
