Drake & Morgan CVA approved with three sites to close

09 June 2021 by
Drake & Morgan CVA approved with three sites to close

Drake & Morgan has secured approval to enter a Company Voluntary Arrangement (CVA) after 90% of creditors who voted approved the proposals.

The CVA will leave the bar and restaurant group with 19 venues in London, Manchester and Edinburgh with three sites permanently closing, understood to be the Allegory and the Listing bars in London and the Refinery Spinningfields in Manchester. Employees from closing sites have been offered roles in alternative venues so all jobs have been preserved.

Jillian MacLean, founder and chief executive of Drake & Morgan, said: "We wish to thank our landlords, suppliers, business partners and other creditors for their support. The approval of the CVA means we can look forward to strong growth and begin rebuilding the business on a positive financial footing."

The Caterer reported on the plans last month when the company said it was seeking a move to a predominantly turnover-based rent model to survive the "unprecedented and challenging" trading conditions brought on by the pandemic.

Drake & Morgan, which was founded in 2008 and is backed by private equity firm Bowmark Capital, reported pre-tax profits of £1.5m in the year to 29 March 2020. Turnover was £50.2m, while earnings before interest, taxes, depreciation and amortisation (EBITDA) were £4.3m.

Numerous hospitality groups have been forced to restructure using CVAs during the pandemic, including PizzaExpress, Wahaca, Caffè Nero, Yo! and the Restaurant Group.

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking