Wahaca to shutter 10 sites as it mulls CVA
The chain experienced a “significant depletion” of cash reserves due to earlier restrictions.
Mexican-themed restaurant chain Wahaca is set to close 10 of its 28 restaurants, as it considers a CVA due to the impact of the coronavirus pandemic.
In an email to staff, founders Mark Selby and Thomasina Miers said they are going to “try and save jobs”.
The group said it experienced a “significant depletion” of cash reserves as a result of the enforced closure of hospitality businesses over the past four months, and subsequently had to raise new equity to allow it to push ahead with reopenings.
However, the business had seen rents at its city centre locations increase “dramatically”, forcing them to only reopen restaurants that will not lose money “to avoid putting the entire business and every job at risk”.
The business will be working with landlords and is exploring various options to facilitate its plan, including a company voluntary agreement (CVA).
"These have been the hardest decisions of our lives and we have looked at this from every angle with the sole objective of looking after as many of our teams and restaurants as we can without having to close the business for good like so many others have had to do," Selby and Miers said.
