Creditors of burger chain Byron have voted in favour of a CVA, which could result in 20 restaurants shutting down.
Around 99% of creditors voted in favour of the CVA proposal, which needs 75% creditor approval. KPMG is handling the process.
Will Wright, restructuring partner at KPMG and joint supervisor of the CVA, said: “Today’s creditor vote will allow Byron to conclude its previously negotiated financial restructuring and is a key step in the directors’ turnaround plan.
“As with all CVAs, more than 75% of creditors had to vote in favour in order to pass the resolution. Today’s vote saw us secure significantly more than this.”
The CVA document splits Byron’s 67-strong portfolio into three categories. In Category 1 there are 51 sites which will keep their leases at their current rent.
A further five leases are in Category 2, which have been identified as being viable at a reduced rent, equivalent to two thirds.
For the remaining sites, in Category 3, rent will be reduced to an equivalent of 55%, which will be paid for six months.
During this period the company will engage with landlords to assess the commercial viability of keeping these restaurants open.
Leases in the Category 3 schedule of the CVA document include sites in Bristol, Birmingham, Cardiff, Harrogate, Manchester and Glasgow.
There are also four London sites included in this category, including Hoxton Square, N1; Store Street, WC1; Southside Shopping Centre, Wandsworth, SW1; and Westborne Grove, W2.
The CVA will become effective following a shareholder meeting to be held tomorrow, 1 February.
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