The Bleeding Heart Restaurant Group has announced it is to undergo a CVA which will see the closure of two of its sites.
The group is set to close its the Don and the Bleeding Heart restaurants as part of the restructuring in order for its The Bleeding Heart Tavern and The Bleeding Heart Bistro sites to continue trading.
The group revealed that 94% of its creditors approved the proposal.
The move comes after it said the pandemic has been the case for many hospitality businesses, and has had a “detrimental effect” on cash flow due to the enforced closure of all hospitality businesses.
Lee Manning, partner at Resolve, who was appointed to handle the restructuring, said: “As a result of the very hard work and financial sacrifices by the Group’s owners, together with the support of its long-standing creditors, two iconic restaurants will survive amongst the economic destruction effected by Covid19.
“While the pandemic has been catastrophic for the hospitality industry, there are still viable solutions available. However, those avenues will only be available to those operators that take action to assess their options sooner rather than later.”
He added: “We commend the Bleeding Heart Group for making the tough decisions in a timely manner instead of waiting until the very end. This made all the difference.”