Caffè Nero which operates 660 shops across the UK is struggling to keep the doors open as the pandemic continues. Rent negotiations with landlords are notoriously difficult, and the company had hired KPMG to help with those discussions in a bid to stem the losses.
However, it now seems that a Company Voluntary Arrangement might be the direction the company takes. Under this procedure, a plan is proposed to creditors and requires 75% of the votes from the debt holders to be adopted.
Without this, the next step is often for a company to go into voluntary liquidation, in which the company will cease trading unless purchased by another business.
Let’s hope the creditors will agree the plan put forward by Nero and we can still see their traditional blue outlets in our towns and cities. Apart from the loss of jobs, Nero makes one of the best high street espresso’s outside of the specialty shops.
