Tossed owner Zest Food seeks rent cuts in restructuring plan
Zest Food, the owner of healthy eating brand Tossed, is the latest casual dining chain to seek a company voluntary arrangement (CVA) restructuring plan.
The company is asking landlords to agree to a combination of zero rent and rent reduction arrangements as part of the rescue plan.
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The healthy fast food chain said the the Vital Ingredient brand, which it acquired last year, was trading “with a level of decline that is significantly below our expectations.”
“This has led to a restructuring of the whole becoming unavoidable,” Zest said.
No stores are expected to close in the short term, but all branches will be converted to the Tossed brand, which Zest said remained in growth.
Zest managing director Neil Sebba said: “The directors consider a CVA as the best way to protect the Tossed brand, provide breathing space for the company, and provide strong foundations on which the business can grow in the future.
“As part of this we are asking landlords to look at the rent that we pay to ensure all the stores remain viable.
“Our proposals do not involve closing any stores in the short term, and as such we seek to protect all our employees.
“However, they do require all landlords to accept a combination of rent free and rent reductions to ensure their store remains part of a viable estate set up for the long term.”
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The announcement is the latest in a string of CVA’s launched by retailers and food outlets as weaker consumer spending and increasing overheads take their toll.
City PM revealed last week that Mexican chain Chilango is in talks to secure its long-term future with restructuring firm RSM, with all options, including a potential CVA, up for discussion.
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