Benito's Hat launches CVA

By Finn Scott-Delany

- Last updated on GMT

Benito's Hat launches CVA

Related tags: QSR, Restaurant

Benito’s Hat operator Pico’s Ltd has entered into a Company Voluntary Arrangement (CVA).

BigHospitality's​ sister site MCA​ reports the eight-strong fast-casual Mexican brand appointed advisors CBW after suffering cashflow problems and slower than expected maturity of new stores.

With two sites closed earlier this year, in Goodge Street and Highcross, there are no plans for further closures under the terms of the CVA, which was supported by 93% of its creditors.

During the last 12 months, Benito’s Hat has developed a new business model with a focus on smaller footprint stores without extraction.

This has left the business facing a number of one-off costs, which have significantly impacted the cashflow position of the business, and leading to the decision to appoint advisors.

In a statement sent to MCA​, managing director Mike Pearson said: “The clear view of the company’s advisers was that whilst the business was facing short term challenges, the core business had real potential and the ability to move forward once the immediate creditor position was resolved.

“The directors had already taken corrective action to close poor performing stores and are not be seeking to close any further locations.

“Each store had been assessed on an individual basis and negotiations held directly with the landlords to find the most appropriate course of action in adjusting any lease terms.”

Benito's Hat opened its first site on Goodge Street in 2008. 

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Related topics: Business

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