Mon, 03 Aug 2020 | BUSINESS SALE
Byron Burger has been sold in a pre-pack deal that will see over half of the chain’s 51 restaurants permanently close. Byron appointed Will Wright and Steve Absalom from KPMG as joint administrators next week. The administrators have now sold Byron and certain assets to a newco owned by investment firm Calveton UK Ltd.
Former owner Three Hills Capital Partners appointed KPMG to seek a buyer for the business at the beginning of May, as reported here, before filing notice of intention to appoint administrators at the end of June, having attracted no bids. Three Hills will now become a minority stakeholder in the business.
In the deal, 20 sites will continue trading, with 551 of Byron’s formerly 1,200 staff transferring to the new owner. The remaining 31 sites will not reopen, having been shut since the beginning of coronavirus lockdown, while there will be 651 staff redundancies.
COVID-19 lockdown has had a catastrophic impact on the UK’s casual dining sector, something we explored in-depth in this recent insight, and Byron Burger has been among those to suffer, with KPMG’s Will Wright saying the pandemic’s impact on the company “has been profound”.
Regarding the sale, Wright added: "After exploring a number of options to safeguard the future of the business and following a competitive sales process, this transaction ensures Byron will continue to have a presence on our high streets."
Sandeep Vyas of Calveton said: "Byron is a pioneering brand much loved by customers across the UK. We are backing Byron because we believe it has great opportunity ahead of it, and it is well placed to adapt to the new consumer environment and dining trends."
Discussing the future of the company, Vyas added: “We will continue to bring Byron’s great tasting food to customers in restaurants and via digital on-demand platforms, whether they are at work, home or on the high street and we look forward to working with the team.”
Vyas’ reference to on-demand platforms hints at a potential future for the casual dining sector: expansion into delivery. In another recent insight, we discussed how the delivery sector has been one of few to benefit from the coronavirus pandemic.
Many casual dining operators currently do not offer delivery, but, with the future of the restaurant experience uncertain due to factors such as social distancing, delivery and takeaway could offer a valuable new revenue stream.
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