A “significant majority” of creditors voted in favour of the deal at a meeting today (21 March), surpassing the 75% total required.
A total of 27 Ed’s and Giraffe restaurant sites have been earmarked for closure under the CVA, according to documents seen by BigHospitality’s sister site MCA.
This will leave 16 Ed’s and 24 Giraffe sites remaining as part of BRG's Giraffe Concepts subsidiary.
“This is a critical step forward for the business, allowing Giraffe Concepts to complete its financial restructuring plan and embark on a comprehensive operational transformation programme,” says Will Wright, restructuring partner at KPMG and joint supervisor of the CVA.
BRG bought Ed’s out of administration in 2016 with the closure of 33 of its then 59 sites. It later combined it with Giraffe, which it acquired from Tesco the same year.
BRG closed the original Ed’s in Soho, which opened in 1987, and converted it to US fried chicken brand Slim Chickens earlier this year. It also submitted plans to convert its Ed’s site in Liverpool to the concept, which it operates under franchise in the UK.
A number of casual dining brands including Jamie's Italian, Carluccio's, Prezzo and Gaucho all closed sites under CVA's last year, citing headwinds such as rising costs and over saturation of the market. Earlier this month the Polpo restaurant group confirmed plans to enter a CVA, with plans to close two of its central London locations.