Brothers Adam and Sam Kaye are stepping down from the board of Wildwood and Dim T operator Tasty to focus on "other commercial interests", it has been confirmed in the group's financial results for 2020.
Adam Kaye stepped down from the board in September. Samuel Kaye stepped down as joint chief executive to become a non-executive director in December and will step away from the board following the group's 2021 annual general meeting.
The pair founded the Ask and Zizzi chains of Italian restaurants before selling up and buying Dim T restaurant in London's Hampstead in 2003.
For the 52 weeks ended 27 December 2020, Tasty reported revenue of £24.2m compared to £44.6m in 2019, due to Covid-19 operating restrictions, and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of £2.7m. It also reported a loss before income tax of £12.6m with net cash at year-end approximately £1.5m.
The group said it had achieved lease concessions and rent reductions to March 2021 on more than two-thirds of the estate and was continuing negotiations with landlords and other creditors regarding outstanding debts.
However, given the current third lockdown and the moratorium expected to end in June 2021, it anticipated it may require further landlord support. With continued creditor assistance, the group said a more formal procedure such as a company voluntary arrangement (CVA) may be avoided but it was "considering all options" while it works with its advisers at KPMG.
Trading in between lockdowns was described as "encouraging" and with the group's bank facility and continued support from creditors and landlords, it is anticipated Tasty will continue as a going concern.
The group operates 54 restaurants, comprising five Dim T and 49 Wildwood restaurants, with approximately 650 employees after the group made one third of its staff redundant last year and surrendered the leases for Wildwood restaurants in Oakham and Letchworth.
Chairman Keith Lassman said: "We believe that the lessons we have learnt over the last 12 months have strengthened our operating model. We have found new ways of operating the business and have become agile at adapting to the current conditions. This includes new delivery partnerships which we envisage will continue in the future. Having survived the turmoil of the past 12 months, and as we come out of this pandemic and restrictions are lifted, we are confident that we are in a good position to service the pent-up customer demand and take advantage of the reduced competition…
"The board regrets that they [the Kayes] are departing and would like to thank both of them for the enormous support and invaluable experience that they have provided to the board from the group's inception and continue to on an ongoing basis as substantial shareholders."