Gusto 'secures its future' after CVA approved

By James McAllister

- Last updated on GMT

Gusto 'secures its future' after CVA approved Coronavirus restaurant closures

Related tags: Italian restaurant chain, Restaurant, North England, CVA, Coronavirus

Italian restaurant chain Gusto has completed a Company Voluntary Arrangement (CVA) that will save more than 600 jobs but also see four sites closed permanently.

The CVA proposals, which the group says will secure the future of the business, were supported by an overwhelming 98% majority of creditors.

As a consequence of the restructuring, Gusto restaurants in York, Lytham, Leamington Spa and Mere Green in the West Midlands will close permanently, with a loss of 105 jobs.

The rest of its 18-strong estate, which is spread across the north of England, the Midlands and Scotland, have now all reopened.

Gusto says it has sought to mitigate the impact of the restaurant closures, and has been able to redeploy 40 members of the team to alternate restaurants.

A package of support for those impacted has been provided.

Going forwards, the business will be 'well-funded' and in 'a strong position to resume a growth strategy' at a time that the board thinks is appropriate.

It adds that the CVA agreements put in place with its landlords gives the group confidence that it can weather any further Covid-related challenges.

“The last six months have been the most challenging in the history of our business, and the wider sector," says Matt Snell, chief executive of Gusto.

"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 their vision in supporting our business plan going forward.”

Related topics: Business

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