On Air Now
Heart Breakfast with Jamie Theakston and Amanda Holden 6:30am - 10am
26 March 2020, 09:07 | Updated: 26 March 2020, 11:43
The burger chain Byron has hired advisers to explore options for accessing emergency funding as Britain's casual dining sector teeters on the brink of collapse.
Sky News has learnt that Byron, which trades from just 51 restaurants following a financial restructuring two years ago, has drafted in KPMG to examine ways of shoring up its balance sheet.
The appointment comes as thousands of companies assess their eligibility for tapping the blizzard of government aid schemes unveiled by the Treasury during the last ten days to help fight the COVID-19 crisis.
Byron, which completed a Company Voluntary Arrangement (CVA) to shed loss-making stores and cut rents in 2018, employs about 1200 people.
The CVA was also handled by KPMG.
The chain is understood to be keen to "furlough" the majority of its workforce by accessing the Coronavirus Job Retention Scheme, which has been set up to pay up to 80% of employees' wages- with a ceiling of £2500-a-month.
However, because the burger chain has a turnover of more than £45m but does not have an investment-grade credit rating, it is not eligible for the £330bn Covid Corporate Finance Facility established to provide cheap loans.
Businesses have expressed alarm this week that the money they need urgently under those schemes is not materialising with sufficient speed.
Restaurant chains have been granted a 12-month business rates holiday, VAT deferral, and access to a separate grant scheme depending upon the rateable value of their properties.
Many, such as Burger King, Carluccio's and Yo!, the sushi chain, have withheld quarterly rent bills that were due this week.
UK Hospitality, the trade association, has warned that more than 1m jobs are at risk without the immediate delivery of financial support to the sector.
Responding to an enquiry from Sky News, Simon Wilkinson, Byron's chief excecutive, said: "In common with most businesses in the sector we are actively exploring the recently announced government support initiatives and have engaged KPMG to help with this."
One source said further financing options, potentially including a sale or capital-raise, were also expected to be explored with KPMG's assistance.
Byron is majority-owned by Three Hills Capital Partners, a private equity firm.
(c) Sky News 2020: Coronavirus: Burger chain Byron hires advisers as dining sector teeters