The creditors of dining operator Tragus Group, owner of Café Rouge and Bella Italia, have approved plans for a company voluntary arrangement (CVA) leading to restructuring of the business.
The company announced its plans to implement an organisational and financial restructuring that would see its significant debts shed or restructured to ensure “a long-term sustainable future for the business” earlier this month.
Under the proposed financial restructuring, Tragus aims to reduce the company’s debt burden from £354m to £91m. The company said there was strong support from landlords, who made up the largest group of unconnected creditors, with over 80% voting in favour of the terms.
It will also seek to sell on the Strada brand and is targeting a deal to be completed before the end of summer.
Tragus Group CEO, Steve Richards, said: “We are pleased that creditors have accepted our proposals to create a more operationally efficient business.
“The future looks bright for Tragus and we are now able to focus on investing in and revitalising the Bella Italia and Café Rouge brands and pushing ahead with the sale of Strada.
“We already have plans in place to open twelve new Bella Italia restaurants over the next year and expect over fifty more restaurants to open over the next five years.”
Peter Saville, Alastair Beveridge and Catherine Williamson of Zolfo Cooper’s Restructuring Services team will act as Nominees for the proposed CVAs.
Saville commented: “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.
“This enables Tragus to restructure its business for a sustainable future and to preserve jobs by focusing on a more profitable core estate.”