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Three Tragus companies enter CVAs

23 June 2014 by
Three Tragus companies enter CVAs

Three Tragus companies - Bella Italia Restaurants, Café Rouge and Café Rouge Restaurants - have each entered a Company Voluntary Arrangement (CVA).

A restructuring services team from Zolfo Cooper has been appointed to supervise the process, after the proposals to enter a CVA were approved by the majority of the companies' creditors.

The move - along with plans to sell 56 Strada restaurants for around £40m - had been widely expected following reports earlier this month.

It is thought that Tragus, which has 292 outlets, has arranged the CVAs with the aim of exiting 30-40 uneconomic leases for Bella Italia and Café Rouge sites.

Apollo Global Management recently took control over control of Tragus from Blackstone. It is understood to be committed to a £110m investment in the Bella Italia and Café Rouge brands, opening 50 restaurants, with plans to open 50 restaurants over the next four years.

"The CVAs were carefully designed to provide the best outcome for all stakeholders and we are delighted that the proposals have been approved by such a large number of creditors. The approval of the CVA proposals will create a more sustainable business and we are pleased to see such a high level of support from the group's landlords" said Peter Saville, part of the Zolfo Cooper team.

"This enables Tragus to restructure its business for a sustainable future and to preserve jobs by focusing on a more profitable core estate."

Concurrent with the CVA process, Zolfo Cooper also started a process designed to secure new equity for the Group's Strada business, which comprises 56 sites nationwide. Paul Hemming, a corporate finance partner in Zolfo Cooper's Advisory Services practice and head of the firm's leisure industry team, said: "Since we started the process earlier this month, we have had a large number of highly credible expressions of interest. We will continue the process, working towards the best outcome for all stakeholders. This should be achieved by the end of the summer."

Tragus to sell Strada after restructuring >>

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