The hospitality sector has been hit hard during the coronavirus crisis, with restaurants having to temporarily close their doors when the UK entered into lockdown on 23 March.
Burger chain, Byron, has announced that it is now looking to appoint administrators and searching for a buyer in order to keep it from collapsing.
Filed a notice to appoint administrators
The popular burger restaurant chain filed a notice to appoint administrators from KPMG on Monday 29 June. Byron currently employs around 1,200 staff and runs 51 sites.
The notice to appoint administrators, which was first reported by Sky News, is understood to be used in order to provide protection from creditors, as Byron holds talks over a potential rescue sale.
Pre-pack administration deal
The burger chain is believed to be in talks with three potential buyers, who could buy the firm as a whole, or parts of it. This would be in a so-called ‘pre-pack’ administration deal, where a company sells all or some of its assets to a predetermined buyer, and appoints administrators in order to do so.
KPMG has been trying to sell Byron since early May. If the chain does go formally into administration, the accountancy firm is set to deal with the process.
Byron was founded in 2007 by Tom Byng, but was purchased in 2017 by current private equity owners, Three Hills Capital.
A Company's Voluntary Arrangement (CVA) restructuring deal was then launched, which saw the closure of 10 sites and reduced rents.
However, Byron currently intends to begin the phased reopening of branches next month, as restaurants begin to reopen as part of the relaxation of lockdown rules.