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Caffe Nero CVA receives 90% creditor approval

Caffe Nero has confirmed it will go ahead with its planned CVA, after the brand rejected a takeover bid from billionaire Issa brothers

The high street chain announced 90% of creditors voted in favour of the proposal that will allow landlords to have their arrears paid in full. 

In a statement the company expressed its gratitude to its landlords, business partners, suppliers and other creditors for their “support and understanding in the process during these challenging times”. 

Caffe Nero has been at the forefront of much media attention this week, after news broke that the family duo behind EG Group proposed a last minute take over bid on the eve of the coffee shop’s CVA vote. 

The deal which the chain later branded as an “unsolicited non-binding offer”, would have seen the rent owed to them during the Covid-19 pandemic paid in full.

If the proposal went ahead, the deal would have seen the entrepreneurs secure their second takeover of a prominent UK chain following its acquisition of Asda earlier this year.

An EG Group spokesperson said: “EG Group notes that Caffe Nero has chosen to proceed with its CVA We can confirm that EG Group submitted an alternative proposal to the Board of Caffe Nero, having previously made an unsuccessful approach to engage in discussions with the company. 

“We regret that Caffe Nero’s creditors did not have an opportunity to consider our proposal fully, as we believe it would have delivered a stronger outcome for all stakeholders, including employees and landlords.”

They added: “Moreover, with our significant global expertise in consumer retail and foodservice, including in the coffee segment, we believe that Caffe Nero would thrive under EG’s ownership. EG Group will continue to look for opportunities to serve communities and customers through expanding our presence in food service.”

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