Mexican themed restaurant Wahaca will have a total of £25m in debt written off in a bid to salvage the brand as part of a Company Voluntary Agreement (CVA).
According to Sky news, Wahaca proposed a CVA that will also see its lenders and shareholders pump £5m of new money into the business in order to help it stabilse,
The news outlet also revealed that lenders backed by NatWest Group will also see roughly £13m of their investment written off. In addition, shareholders are writing off the £12m they are owed by the company.
The news comes after what has been a challenging year for the brand. Last month it was revealed that Wahaca would close 10 of its 28 restaurants across the UK.
At the time owners cited a depletion of cash reserves during lockdown, and ‘dramatically’ increased rents as reason for its closure.
The CVA proposal for Wahaca is currently being supervised by PricewaterhouseCoopers (PwC).