Burger chain Byron faces administration
BURGER chain Byron is poised to fall into administration as it races to find a buyer that can stave off a collapse, with 1,200 jobs at risk.
The company has filed a notice of intention to appoint administrators in a bid to protect it from creditors during talks with potential buyers, Sky News reported. Byron is the latest casual dining chain to fall on hard times during the coronavirus pandemic after struggling to obtain financial support through the Treasury’s emergency loan schemes.
Consultant KPMG has been trying to find a buyer for Byron since early May after it was hired as an adviser by the chain’s private equity owner Three Hills Capital Partners in March. The most likely outcome for the burger chain is now considered to be a pre- pack administration, with the business then broken up and sold off in pieces.
Byron was founded in 2007 with just two sites. An over-ambitious expansion plan and influx of new competitors forced the business into a painful restructuring in 2018, resulting in the closure of 19 restaurants. Byron now has 51 UK sites and posted sales last year of £70.9m, with a gross profit of £31.6m.