Greene King secures approval for Loch Fyne restaurants CVA

Greene King has secured approval for its Loch Fyne restaurant business to enter a Company Voluntary Arrangement (CVA).

As first reported by Propel, the restructuring will see the 11 Loch Fyne sites that permanently closed last year returned to landlords.

It will leave the seafood brand with 10 restaurants in locations including Edinburgh, Cambridge, York and the City of London.

A Greene King spokesperson said: "Loch Fyne has been severely impacted by the Covid-19 pandemic and the resulting social restrictions.

"Following advice from an insolvency practitioner, a CVA was proposed to creditors, which has now been approved and will enable us to hand back to landlords a number of sites that are already closed and no longer needed within the Greene King estate.

"There are no job losses as a result of this and we are looking forward to reopening a smaller number of profitable and well-run Loch Fyne restaurants, which will continue trade once restrictions ease."

The restaurant group started out as part of the Loch Fyne Oysters company in Scotland and was sold to Greene King for £68m in 2007 when it had 36 sites.

Nine of Loch Fyne's remaining restaurants have reopened for indoor dining, though its London site is closed until further notice.

Greene King was sold to Hong Kong-based real estate firm CK Asset Holdings for £2.7b in 2019. The group operates approximately 2,750 pubs and closed 79 sites last year blaming the impact of coronavirus restrictions and the 10pm curfew. Around 25 venues, including the 11 Loch Fyne restaurants, were permanently shut.

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