The decision follows a strategic review of the business and will lead to the closure of three of group’s 22 bars and restaurants. All team members in affected sites will be offered alternative roles within the company, it says.
The proposal seeks the support of landlords and, together with the backing of other creditors in recent months, will secure the long-term future of the business, according to the company.
“We started last year as a profitable and growing business and, in common with the rest of the hospitality industry, have been significantly affected by repeated lockdowns and tier restrictions,” says Jillian MacLean, founder and CEO of Drake & Morgan.
“This course of action, if approved, will safeguard the future of the group and give it the breathing space it needs to recover. We would like to thank all our stakeholders for their support during this challenging period.
“We have started to welcome our customers back to our bars and restaurants and we’re fortunate to have a number of large terraces that are in demand. We have spent the last year developing our teams and innovating our product, and we are now looking to the future.”
Drake & Morgan has appointed two Partners of Deloitte to advise on the CVA.
“The CVA will allow flexibility in this period of uncertain trading by moving to a predominantly turnover-based rent model for its duration,” says Gavin Maher, a partner at Deloitte. “Drake & Morgan was a successful business prior to COVID-19 and this action will enable the business to emerge strongly from the pandemic.”