Tasty considers CVA

By James McAllister

- Last updated on GMT

Photo credit: wildwoodrestaurants.co.uk
Photo credit: wildwoodrestaurants.co.uk

Related tags Casual dining CVA Coronavirus

Wildwood operator Tasty says it is exploring a potential Company Voluntary Arrangement (CVA).

The group is working with advisers from KPMG to assess the impact the Coronavirus has had on the business, and explore the strategic options available to it, including a potential CVA.

It currently has 50 Wildwood sites across the UK, 44 of which have reopened; as well as the five-strong Dim T restaurant chain.

The company says it is due to start consensual negotiations with landlords and other creditors shortly, and anticipates this process will be completed by the end of November 2020.

However, it adds that no decision on its future plans has been made yet. 

Tasty's board believes that with new regulations and the likelihood of tighter restrictions in the near future, all potential options should continue to be explored but, with creditor assistance, a more formal procedure may be avoided.

The company has secured a £1.25m, four-year term loan from its bankers Barclays, in order to strengthen its balance sheet and provide additional working capital support.

The facility is available to be drawn down until 7 February 2021, but is restricted until the future of the company is assured through restaurant closures and creditor arrangements.

It has a capital repayment holiday of 12 months and carries interest at a rate of 4.5% per annum over the Bank of England Base Rate, following draw down.

The news comes little more than a month after Tasty confirmed it had reduced its workforce by 32%​, making a total of 284 staff redundant.

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