Burger chain considering closures

HUNDREDS of jobs are under threat at Byron after the stricken burger chain put 20 restaurants at risk of closure as part of a proposed restructuring package.

A Byron restaurant was expected to open in Cardiff last year.

A first venue in Wales for the popular burger chain, famous for its own line of craft beers and an array of extra-thick milkshakes, hard shakes and Freakshakes, was meant to open in a unit in St David’s next to Vivenne Westwood and opposite John Lewis.

The burger chain is now looking to agree a company voluntary arrangement (CVA) to help put them on firmer financial ground by securing hefty discounts on rental costs.

A CVA allows a business to close loss-making stores and was recently used by embattled toy retailer Toys R Us.

Accountancy giant KPMG, which is handling the process, said Byron’s directors were making the move to secure the company’s future amid “gathering economic headwinds”.

However, it would need to win the backing of landlords and creditors before pushing forward with the process.

The announcement comes as the group confirmed that Three Hills Capital Partners would strike a deal to become the biggest shareholder in the group as part of a sale process linked to the CVA.

Will Wright, restructuring partner at KPMG, said: “Over the last 10 years, Byron has grown to become a stand-out name within the UK’s casual dining sector.

“However, in recent times, certain parts of its portfolio have not met expectations, and with gathering economic headwinds starting to impact the sector more profoundly, the directors embarked upon a strategic review of the business as a means of safeguarding its long-term future.”

KPMG added that no restaurants will close on day one, and employees, suppliers and business rates will continue to be paid on time and in full.