Caffe Nero is reportedly considering the launch of a company voluntary arrangement (CVA), as the pandemic takes a toll on its earnings.
According to Sky News, the coffee chain is considering a CVA to cut costs on rent bills and exit loss-making outlets. Reports suggest it has not yet been decided when a final decision on the insolvency mechanism will be made, however, sources close to the company expect one in the “coming weeks”.
Caffe Nero currently operates 600 UK stores across the UK.
In September, the hot drinks outlet appointed KPMG to negotiate high street rent cuts with landlords, it is reported that the big-four firm will continue to work with the brand throughout its restructuring process.
It is unclear how many roles will be affected if the CVA was to go ahead.
A spokesperson for the chain told sky: “It has been a difficult period since lockdown measures were introduced by the government and we’re working incredibly hard to navigate our way forward.”
“As part of this, we are working closely with advisors to help review our options and assist with our ongoing negotiations with landlords.”
Last week, rival chain Pret A Manger announced it would shutter six branches and make an additional 400 members of staff redundant.
Catering today has contacted Caffe Nero for comment.