PE-backed Caffè Nero enters CVA amid Covid downturn

According to data firm Pitchbook, Caffè Nero is backed by private equity investors including London-based Novator Partners and Brussels-based Merifin Capital.

The chain employs around 6,000 people and claims to serve 135 million customers annually.

Devastating’ impact

Accountancy firm KPMG has been appointed to oversee the CVA process, and landlords and creditors have until 30 November to vote on the proposal.

It is understood Caffè Nero is proposing to move most sites to turnover-based rent, and that any store closures it is forced to make will be minimal.

The hospitality sector has been one of the worst affected industries by the coronavirus pandemic because of a dearth of office workers and commuters, which are key customers.

In the summer, Pret a Manger announced it was cutting 3,000 jobs, around a third of its workforce while Costa Coffee said it would axe 1,650 roles.

“Like many others across the sector, the impact of measures introduced in response to the Covid-19 pandemic has been devastating,” said Will Wright, head of regional restructuring at KPMG.

“In putting forward this CVA proposal, the directors have worked hard to strike a fair compromise with stakeholders to provide the flexibility the business urgently needs to get it through the pandemic.”

Source: Private Equity News