Sushi chain YO! is the latest restaurant to consider a CVA to help reduce its “unsustainable” rental costs as a result of the coronavirus crisis.
Deloitte have been appointed to explore the company’s options.
Yo! becomes the latest in a long line of restaurant chains to look into CVAs since the industry was plunged into crisis in March by the Covid-19 pandemic.
YO! has 70 UK restaurants, employing an estimated 1,400 people. It is not yet known whether it would look to close any of them as part of a CVA process.
Though the formal decision to go ahead with a CVA has not been confirmed yet, it is looking very likely, and sources say the company ‘’would have little choice but to pursue one’’.
Some of the sites where the company has not yet been able to agree concessions with landlords no longer trade under the YO! brand. Where discussions with landlords had already been successful, the chain has been able to reopen restaurants, in accordance to the government measures.
A spokesperson for YO! said: “All we can say at the moment is that YO! has been engaged throughout the last few months in exploring measures to best manage our property estate. This has included talking directly with our landlords and consulting with advisors so we can best adapt to the changed marketplace.”