Restaurants

GBK ‘appoints restructuring advisors’ prompting CVA suspicions

Burger chain Gourmet Burger Kitchen (GBK) has reported appointed restructuring advisors Deloitte leading to suspicions that the company could be set to enter a company voluntary arrangement (CVA).

According to The Times, Deloitte is seeking rent reductions and site closures for the chain which recently reported a loss of £2.24m in the 22 weeks to 29 July 2018. Its like-for-like sales were also down by 10.6%.

If the chain does agree to a CVA, it will follow a line of major high street restaurant chains which have entered CVAs in 2018, including Prezzo, Byron and Jamie’s Italian.

The chain’s parent company, Famous Brands, issued a statement on 17 August which said: “Famous Brands is giving consideration to strategic options relating to a subsidiary that may

have a material impact on the price of the company’s share price. Shareholders are requested to exercise caution when dealing in the company’s shares.”

Catering Today has contacted Deloitte for comment.

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