Travers Smith LLP has advised Carluccio's Limited, the well-known Italian restaurant chain, on its proposed company voluntary arrangement (CVA).
Like many other businesses in the casual dining sector, Carluccio's has been adversely impacted by a combination of pressures, including a gradual decline in consumer spending and increasing competition, coupled with rising costs.
The CVA is designed to tackle the cost of the company’s leasehold obligations across its restaurant portfolio, which if successful, will allow the business to move forward across a more profitable estate. It forms one element of a wider turnaround plan which, linked to the CVA’s approval, will see an injection of funding into the business from the company’s majority shareholder to fund an investment plan. Creditors will vote on the proposed CVA on 31 May 2018.
The Travers Smith team was led by Restructuring Partner Edward Smith, assisted by Restructuring Associate Kirsty Emery.