Creditors of struggling burger chain Byron have just voted to approve an arrangement which could keep some of the stores open longer.
Some 99 per cent of creditors voted in favour of the credit voluntary arrangement (CVA) at a meeting today, surpassing the 75 per cent needed to pass the proposal.
The CVA divides Byron's 67 leasehold sites and nine non-operational leaseholds into three categories. For 51 sites, the rent wil remain unchanged but Byron will now pay two-thirds rent at five locations and a 55 per cent rent on 20 others.
The arrangement for the third category will be in place for six months while Byron has crunch talks with landlords over whether to continue trading from these sites.
The list of those under threat includes five London sites in Hoxton Square, Spitalifields, Wandsworth, Westbourne Grove, and Store Street in Bloomsbury.
Will Wright, restructuring partner at KPMG and joint supervisor of the CVA, said: “Today’s creditor vote in favour of the CVA proposal will allow Byron to conclude its previously negotiated financial restructuring and is a key step in the directors’ turnaround plan."
The CVA will become effective tomorrow following a shareholder meeting.
Other casual dining chains have been struggling with rising rents, labour costs and food prices. Jamie's Italian confirmed it would close 12 branches earlier this month, while other brands have flagged a drop-off in trading in suburban London.