Drake & Morgan CVA approved with three sites to close

Drake & Morgan has secured approval to enter a Company Voluntary Arrangement (CVA) after 90% of creditors who voted approved the proposals.

The CVA will leave the bar and restaurant group with 19 venues in London, Manchester and Edinburgh with three sites permanently closing, understood to be the Allegory and the Listing bars in London and the Refinery Spinningfields in Manchester. Employees from closing sites have been offered roles in alternative venues so all jobs have been preserved.

Jillian MacLean, founder and chief executive of Drake & Morgan, said: "We wish to thank our landlords, suppliers, business partners and other creditors for their support. The approval of the CVA means we can look forward to strong growth and begin rebuilding the business on a positive financial footing."

The Caterer reported on the plans last month when the company said it was seeking a move to a predominantly turnover-based rent model to survive the "unprecedented and challenging" trading conditions brought on by the pandemic.

Drake & Morgan, which was founded in 2008 and is backed by private equity firm Bowmark Capital, reported pre-tax profits of £1.5m in the year to 29 March 2020. Turnover was £50.2m, while earnings before interest, taxes, depreciation and amortisation (EBITDA) were £4.3m.

Numerous hospitality groups have been forced to restructure using CVAs during the pandemic, including PizzaExpress, Wahaca, Caffè Nero, Yo! and the Restaurant Group.