La Tasca – the Spanish tapas restaurant group – has confirmed it has initiated a Company Voluntary Arrangement (CVA) following a meeting of creditors on 28 August 2012.
Insolvency practitioners are now restructuring La Tasca’s lease arrangements and will execute plans to relinquish leases at 22 of the company’s trading units as part of the process.
At the meeting on 28 August, the CVA was passed by 75.2{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34} of creditors unconnected to the company, and 85.4{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34} of all creditors.
A rent reduction on 19 restaurants has been agreed and a monthly installment plan secured for 46 outlets.
La Tasca expects to retain 46 restaurants, all units will continue to operate as normal during this process, with the company increasing its investment to improve the experience for its guests.
Simon Wilkinson, was recently appointed chief executive officer of La Tasca. He said the company has worked hard to renegotiate leases at sites where current rent levels are unsustainable.
He added: “Over the past 12 months the new La Tasca management team has focused all efforts on re-energising the business during an unprecedented period of economic slowdown.
“The business from a people, cultural, operational & guest perspective has been completely overhauled.”
Wilkinson said the management of the chain is confident that a successful CVA process will secure the company’s future, safeguarding many jobs in the process.
He said: “We are also confident it will ensure the business moves forward profitably and attracts new investment, which in turn will allow re-investment in the existing estate and a programme of acquisition & expansion both within the UK & Internationally.”
Source: Insolvency News