Abokado enters CVA
The restaurant chain has blamed this on an online banking fraud last July.
Abokado has revealed that they have entered into a company voluntary arrangement (CVA), no thanks to its underperforming sites.
The chain stated that they encountered a “significant sophisticated online banking fraud” last July, which has affected their working capital.
“The fraud is subject to investigation by the relevant authorities but the directors consider it unlikely there will be any recovery,” they added.
Abokado also explained that they have undertaken measures throughout the year against cost reduction, according to a statement given to Propel. “The proposed CVA is designed to mitigate and/or remove these factors to underpin the short, medium and long-term viability of Abokado providing the best outcome for our creditors, suppliers, customers and employees. The directors wholeheartedly recommend all stakeholders vote in its favour.”
The chain reported its full-year financial results last October, posting profit growth of 24% in 2018 from last year to £726,000. Its EBITDA also rose to £1.7m whilst its like-for-like sales took a 6% climb.
