Caffe Nero’s landlords are planning a legal challenge to the chain’s CVA, after it rejected a last minute takeover bid by the Issa brothers.
Under EG Group’s bid, landlords would have been paid in full for rent arrears during the pandemic, compared with 30p in the pound under the CVA.
Under insolvency law, creditors can challenge the outcome of such a restructuring plan within 28 days.
Lawyers for EG Group have written to Caffè Nero to highlight the strong possibility of a landlord revolt.
According to the CVA documents, landlords are owed arrears of £110.3m, All Souls College, Oxford, is owed £321,000 and Heathrow is owed £2.7m.
Terje Gilje, 59, a landlord owed £208,000 for a branch in Kensington, west London, said that he would join a legal challenge to the CVA. He said: “I think it’s outrageous that they didn’t delay. I suspect that you will find a group of landlords will gain momentum and will go ahead and challenge it.”
