Fri, 11 May 2018 | ADMINISTRATION
Restaurant chain Cote is considering pursuing insolvency for part of its business following recent financial difficulties.
According to reports, BC Partners-owned Cote is already looking to close a number of its restaurants that trade under the Limeyard and Jackson & Rye brands, all of which were purchased in 2016.
While the main Cote sites are said to be performing "resiliently", Cote has revealed that it still needs to take action on the other sites to prevent further financial pressure on the group.
As a result, Cote has revealed that one potential option would be a Company Voluntary Arrangement (CVA), which is a form of insolvency that would allow for the closing of a number of sites and a reduction in rent on remaining restaurants. This could eventually lead to the partial business sale of a branch of the group.
Commenting on the news, a spokesman for Cote has confirmed that the group is currently exploring a number of options as it attempts to cope with the current difficulties facing the restaurant sector and high street in general.
"In some instances we have closed or sold outlets, and we are working hard to find viable options for others while continuing to support those that are trading well."
He added: "Our Cote restaurants continue to perform well, which is a testament to the strength of that offer in what remains a very challenging environment."
A number of high street companies have resorted to CVAs in recent months as a result of the issues currently facing the retail and food sectors. These include Toys R Us, Carpetright, New Look and House of Fraser, as well as restaurant chain Prezzo.
Deeply embedded in its local community in a lucrative tourist hotspot the company has created multiple award-winning brands which it supplies through wholesale retail and ecommerce channels. Relationships are in place with several leading foodservice...
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