The closures follow the company voluntary arrangement (CVA) proposed by the company.
Giraffe Concepts Ltd, the company behind the namesake concept and Easy Ed's Diner, is set to shut a number of their sites.
It currently holds 70 sites, of which 13 would see a rent reduction under the terms of the CVA, and a further 27 would face closure. The proposed supervisors of the CVA are Will Wright and David Costley-Wood from KPMG’s Restructuring practice.
Giraffe will foreclose its locations in Aberdeen, Basingstoke, Blackheath, Bluewater, Brighton, Bromley, Bury St Edmunds, Castleford, Chelmsford, Eldon Square, Guildford, Holland Park, Lakeside, Manchester Trafford Center, Kingston Centre and MK Centre in Milton Keynes, Norwich, Reading, Walton-on-Thames, Watford, and York Monks Cross.
Commenting on the CVA, Will Wright, restructuring partner at KPMG and a proposed supervisor of the CVA, said: “This CVA seeks to address the cost of the company’s leasehold obligations across a number of unprofitable sites, and if successful, will put the business on a surer financial footing. Importantly, it constitutes one element of a wider financial and operational turnaround plan which, subject to the CVA’s approval, will see an injection of funding into the business from the company’s majority shareholder.”
Giraffe Concepts needs to secure at least 75% creditor approval for the CVA for it to proceed. The creditors will vote on the CVA on 21st March 2019.
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