Byron secures rescue deal that could see up to 20 sites close

Creditors at the Byron burger chain have voted in favour of a Company Voluntary Agreement (CVA) that could see the closure of up to 20 sites.

Some 99% of creditors voted in favour of the rescue plans at a meeting held today (31 January).

Byron CEO Simon Cope said in a statement that he was confident ‘a new Byron can begin to take shape’ with a focus on a smaller and more ‘efficient’ portfolio.

“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,” said Cope.

“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.”

Byron was founded by Tom Byng and opened its first site in Kensington High Street in 2007.

It was sold to Hutton Collins for £100m in 2013 when it had just 34 sites, and it has since doubled its estate to almost 70.

The CVA proposal seen by BigHospitality’s sister site MCA shows that Byron’s like-for-like sales declined 17% in the final two weeks of its 2017 financial year, and tracked at an average of -5.9% during the entire 12-month period.

The 20 restaurants at risk of closure include sites in Birmingham, Bristol, Manchester and London’s Spitalfields.

“Our landlords have been both understanding and positive throughout this process and we look forward to working proactively with them in the coming months,” said Cope.

The CVA will see Byron’s owner Hutton Collins sell half of its holding to investor Three Hills Capital Partners, making it the majority shareholder.