Covid: Caffè Nero seeks rescue deal amid second lockdown

Caffè Nero has been forced to launch a restructuring of its business following the second lockdown.

The coffee chain is launching a Company Voluntary Arrangement (CVA) which will allow it to renegotiate terms with its landlords and other creditors.

Caffè Nero, which employs 6,000 workers, said "the pandemic has decimated trading".

It said it was able to navigate the first shutdown but the subsequent fire break necessitated "further action".

The company trades across 800 shops in the UK and a further 200 sites overseas.

Caffè Nero said it had converted many of its shops to takeaway-only services during the first lockdown in March.

But following the second shutdown, it said that, "with many people continuing to work from home, ongoing limits to social interaction and a sustained reduction to footfall in city centres, it is unclear how long this will impact Caffè Nero".

It add that the CVA would allow the company "to better manage its fixed costs moving forward".

"Like so many businesses in the hospitality sector, the pandemic has decimated trading, and although we had made significant progress in navigating the financial challenges of the first lockdown, the second lockdown has made it imperative that we take further action." said Gerry Ford, the chain's founder and chief executive.