Byron burger crisis plan slashes Scottish jobs

by XPRESS, 19 February 2018

Scottish staff of stricken burger chain Byron will lose their jobs after a crisis plan was backed by creditors and landlords.

A restructuring package that was accepted today will spark hundreds of job losses across the UK, including those at the Edinburgh and Aberdeen branches.

The Glasgow branch on West George Street already closed its doors earlier this month, only a year and half after it opened.

Byron tabled the Company Voluntary Arrangement (CVA) in an attempt to shore up its financial position by allowing it to shut loss-making restaurants and secure deep discounts on rental costs.

Around 20 restaurants will now be closed as part of the process, as Byron's owners attempt to stave off its decline in the casual dining sector.

The burger chain's CVA plan secured the required 75% backing it needed from creditors, which include landlords, during today's vote.

A total of 99% of creditors voted in favour of the CVA.

Will Wright, KPMG restructuring partner and joint CVA supervisor, 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.

"As with all CVAs, more than 75% of creditors had to vote in favour in order to pass the resolution. Today's vote saw us secure significantly more than this majority with 99% of all voting creditors choosing to approve the CVA."

Byron boss Simon Cope said: "We are very pleased to have such strong support from our creditors.

"As a result of this restructuring process, a number of our restaurants will close and we will do everything possible to redeploy staff to other sites and initiatives.

"With the support of our new owners, Three Hills Capital, I'm confident that a new Byron can begin to take shape.

"Byron's brand and offer remains strong and distinctive, and with a smaller and more efficient restaurant estate we can continue to provide an outstanding burger experience for our customers and to develop and grow a sustainable and innovative business for the long term."

As part of the sale process linked to the Byron's restructuring, investment house Three Hills Capital Partners will become the biggest shareholder by snapping up half of Hutton Collins' stake.

Professional services giant KPMG, which is handling the CVA, moved to reassure staff that no restaurants would close on day one of the process and employees, suppliers and business rates would continue to be paid on time and in full.

As part of the sale process linked to the Byron's restructuring, investment house Three Hills Capital Partners will now become the biggest shareholder by snapping up half of Hutton Collins' stake.

A further 20 will have their rents cut by 45% for six months.

Article credit: Insider