Cafe Nero is on the verge of bankruptcy: the coffee chain blames the second lockdown.
- The coffee chain was forced to include itself in a company voluntary arrangement
- Founder Jerry Ford, 62, said he was motivated to run the second lockdown company
- He now hopes to reduce costs by negotiating lease agreements with landlords
- During the first lockdown, Cafe Nero was forced to close for months
Cafe Nero has become the latest business threat to the Kovid-19 Pandemic – leading to the tragedy of the second national lockdown.
Last night the coffee chain forced a company into a voluntary arrangement, which is a kind of bankruptcy that allows companies to continue trading while trying to achieve their financial order.
Founder Jerry Ford, 62, said he was motivated to run the second lockdown company. Restrictions on socialization, the shortage of shoppers in the centers, and government advice for workers to stay away from their offices affected the network.
Mr. Ford, who started the business in 1997, hired KPMG, a leading accountant, to advise on CVA.
Cafe Nero (Store Image) Becomes Covid-19 Pandemic’s Latest Business Risk – Caused by Second National Lockdown Down (File Photo)
His hope is that he will now be able to renegotiate rental agreements with landlords and reduce costs, which will enable the company to restructure its business when the pandemic ends.
Cafe Nero was forced to close completely for months during the first lockdown, and can now only offer takeaways.
More than 6,000 people are employed in 800 stores across the UK, but closures and job losses are expected to be low.
Many of its lets toilets are located in the city, city centers and transport hubs, i.e. it has lost a lot of customs due to people working from home.
“With our dynamo facilities closed for the second time now, we have no choice but to launch this CVA to protect the future of our business,” Ford said last night.
Before the pandemic, the chain was trading strongly, with a long record of sales growth.
Founder Jerry Ford (pictured) (62) said he was motivated to run the second lockdown company. He appointed KPMG, a leading accountant, to advise on CVA
“However, like many businesses in the hospitality sector, the pandemic trade was devastated, and although we made significant progress in navigating the financial challenges of the first lockdown, the second lockdown made further action necessary.”
He added that the goal is to continue to protect our focus jobs since March.
Cafe Nero was forced to close completely for several months during the first lockdown, and now can only offer takeaways
Cafe Nero tried to match the virus by offering a click and providing service and home delivery, but it was not enough.
Will Wright, head of KPMG’s local reform organization, said: ” Cafe Nero is a great brand on the high streets of the UK.
However, like many others across the region, the impact of the measures presented in response to the Kovid-19 pandemic is devastating.
CVAs used major high street names such as Debenhams, Clarks, Clintons and Homebase.
But critics say they are sometimes used as a tool to get out of debt and reduce landlords’ rent bills.
However, their design makes it difficult for spontaneously profitable companies to find a comfortable place to get back on their feet.
Cafe Nero’s CVA must be approved by its creditors and landlords.
WH Smith confirmed that 200 jobs would be jeopardized to close 25 shops after reporting an annual loss of $ 280 million.
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