Italian restaurant chain Gusto is to go ahead with its CVA plans, which it said secures the future of the business and more than 600 jobs.
Amid the “most challenging trading conditions seen for the casual dining sector in a generation”, the firm said the CVA was “overwhelmingly” supported by the majority of creditors with 98% voting in favour.
It added the approval means Gusto can “weather the continuing pandemic’ and be ready to return to a growth strategy “when the time is right”.
However, it revealed several sites have had to close, however staff have been redeployed to its remaining 18 restaurants where possible.
Matt Snell, chief executive of Gusto, said: “The last six months have been the most challenging in the history of our business. and the wider sector. The passing of the CVA is an important milestone, securing the future of the Gusto business and protecting more than 600 jobs.
“I would like to take this opportunity to thank all of our creditors and landlords for their support through this time and our investors for its vision in supporting our business plan going forward.”
Damian Webb, partner at RSM Restructuring Advisory, who advised on the CVA, added: “The coronavirus pandemic has presented a huge range of challenges for the casual dining sector. Following the Prime Minister’s announcement of new measures this week, these challenges look set to be with us for at least the medium-term.
“The approval of this CVA, with the overwhelming support of Gusto’s landlords, shows how stakeholders are prepared to support highstreet businesses until the time when things become easier.”