Abokado: ‘small handful’ of underperforming sites could close

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Abokado CEO Mark Lilley has said there are a small handful of underperforming shops in the estate which could be closed over the coming months.

Speaking to BigHospitality's sister site MCA after the company confirmed its Company Voluntary Arrangement (CVA), he said the stores were in weaker locations and did not fit the core operating or business model.

Lilley said the vast majority of our sites were highly profitable and would continue to trade as normal.

The healthy eating grab and go concept received the support of 99% of its creditors for the CVA process.

The business experienced trading pressures and an online banking fraud which adversely affected working capital.

The fraud remains under investigation by the authorities.

The directors sought the advice of RSM and concluded that the best possible outcome for all parties was to restructure the business by way of a CVA.

Lilley told MCA: “The vast majority of our sites are highly profitable and will continue to trade as normal. There are a small handful of shops where both we and the landlords have rights of termination, some of which will be exercised over the coming months. These are typically stores in weaker locations which do not fit our core operating or business model and which are underperforming. Our core business remains unaffected.”

Abokado was founded by Lilley and his wife Lindsay in 2004, and currently operates 23 sites across the capital.

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