Sandwich chain Eat calls in advisors to consider site closures

By Sophie Witts contact

- Last updated on GMT

Sandwich chain Eat calls in advisors to consider site closures

Related tags: Leveraged buyout

Sandwich chain Eat has become the latest high street operator to consider a restructuring plan that could see a number of its stores close.

The group, which has more than 100 cafes, has brought in KPMG to advise on its options.

It comes in the midst of an increasingly tough trading environment, with a growing number of operators closing sites in the face of rising food costs and business rates.

Last month creditors at the Byron burger chain voted in favour​ of a company voluntary agreement (CVA) that could see up to 20 restaurants shut.

The 300-strong Prezzo chain has also appointed consultants​ at turnaround firm Alix Partners to advise on its options.

A spokesperson for Eat told Sky News​ it was not working on a CVA, though Sky​ reports the chain is likely to press ahead with plans to close a number of stores.

Eat is majority owned by private equity firm Lyceum Capital, which backed a buyout of the chain in 2011.

Despite headwinds hitting the eating out sector, Eat continues to be profitable. The group reported a 5% growth in like-for-like sales in the year to June 2017, with adjusted earnings up 19% to £4.3m.

Related topics: Business & Legislation

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