Itsu formally launches CVA process in bid to seek rent relief
The company does not anticipate large-scale redundancies.
Itsu has formally launched a company voluntary arrangement (CVA) process, intending to close two sites and reduce rents on 53 UK locations.
The pan-Asian company said it will seek to protect “as many jobs as possible” throughout this process and does not expect large-scale redundancies given the limited store closures.
“Until the crisis struck in March this year, itsu was on track to enjoy record sales and growth. However, the unavoidable combination of months of zero trade and ongoing social distancing will significantly affect 2020/2021 and beyond. City centres and financial districts are also certain to change with businesses incorporating more regular home working by staff,” the company said in a statement.
Itsu clarified that the business is not up for sale and is not seeking new investment. The CVA also does not affect itsu [grocery]’s relationship with its suppliers.
The proposed nominees of the CVA are Simon Appell, Clare Kennedy and Peter Saville from AlixPartners LLP. The CVA meeting will be held on 19 August.
Aside from a CVA, other actions Itsu is taking to adapt include rolling out a streamlined menu, investing in self-service kiosks and advanced digital technology for easier pre-ordering. Itsu has also created a brand-new store concept which they expect to “open up more trading opportunities for the UK and overseas market.”
