Market Halls' future at 'real risk' as it launches CVA proposals

London food hall operator Market Halls has launched Company Voluntary Arrangement (CVA) proposals in a bid to save the business.

The group, which was founded in 2017 and has sites in Fulham, Oxford Street and Victoria, has not reopened any of its halls since March 2020 over fears coronavirus restrictions would severely limit trade.

Founder and chief executive Andy Lewis-Pratt said the future of the business was now at "real risk", with sites not expected to reopen until this summer and debts continuing to mount.

Prior to the pandemic the group's food halls were filled with small restaurant traders including BaoziInn, Cook Daily, HotBox and Gopal's Corner.

Four of the group's entities, Try Market Halls Limited (TMH), Try Market Halls Fulham Broadway Limited (TMH Fulham), Try Market Halls Victoria Limited (TMH Victoria) and Try Market Halls Oxford Street Limited (TMH Oxford Street), are each launching a CVA.

The financial restructuring programme is being funded by a new investor in the business, Gees Court Partners.

"The past 14 months have been the most challenging of my career," said Lewis-Pratt. "Prior to the pandemic, we were fast-growing and had exciting plans for our business. But with prolonged restrictions forcing us to close our doors indefinitely, the future of Market Halls is now at real risk.

"We've been working incredibly hard to find a way through, and after much consideration, it's our firm belief that these CVA proposals represent the best means possible of giving us the flexibility we need to secure our future."

Before the pandemic Market Halls was due to open a site in Canary Wharf and proposals were approved for a location in York. The group ran a site at the Intu Lakeside shopping centre in Thurrock, which closed around Christmas 2019 after just six months of trading.

Will Wright and Chris Pole from Interpath Advisory are the proposed nominees of the CVA.

Wright said: "London's hospitality sector has seen trade decimated during the course of the pandemic, and Market Halls is no exception. With little prospect of the business being able to reopen until the mid to late summer at the very earliest, the CVA proposals provide the companies with the additional flexibility they require to navigate the challenging months ahead, as well as securing new investment for the future."

TMH Fulham, TMH Oxford Street and TMH Victoria have reached consensual agreements with their landlords such that no further compromise of the leases is required. The landlords are therefore classed as critical creditors for the purposes of the CVAs, and as such are excluded from the proposals.

TMH is a non-trading holding company that employs the management team and head office staff.

Creditors will have access to proposal documents from today (1 June) and will have until 16 June to vote on the plans.