Wahaca CVA approved with closure of 11 restaurants
Wahaca has become the latest casual dining group to enter a Company Voluntary Arrangement (CVA), with the closure of around a third of its estate.
More than 75% of creditors at the Mexican restaurant chain voted to approve the restructuring plan at a meeting on 6 October.
A spokesperson for Wahaca confirmed 11 restaurants had closed as part of the CVA, leaving the business with 13 sites in London, Brighton, Edinburgh and Cardiff.
They told The Caterer: "The CVA being passed allows us to focus positively on the future by continuing with our reopening programme, as well as an ongoing dedication to our core offering of sustainable, high quality, fresh food and a fantastic customer experience."
The CVA proposals reportedly involved lenders and shareholders writing off £25m of debt while injecting £5m in to the business, according to Sky News.
Wahaca was founded by MasterChef winner Thomasina Miers and Mark Selby in London in 2007, and grew to around 30 locations nationwide.
In August, Wahaca said it would have to close sites due to the financial impact of the coronavirus shutdown and the fact rents and rates in city centres, where the majority of its restaurants are located, had risen 70% in the last five years.
A large number of casual dining chains have used CVAs to restructure their businesses amid the coronavirus pandemic this year, including Pizza Express, Gusto and Thai Leisure Group.
Image sourced from Shutterstock
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