Burger chain Byron is approaching administration as restaurants continue to suffer the effects of the coronavirus shutdown.
The company, which employs around 1,200 staff, filed a notice to appoint administrators from KPMG on Monday, The Mirror reports.
But it's understood that the company is seeking a buyer to rescue the chain, with the administration move used to provide protection as it holds talks over the potential sale.
The burger chain, which runs 51 sites including one in Newcastle city centre, started a sale process with KPMG earlier this year after being forced to shut its sites in the face of the pandemic.
The chain used to have a site in the Metrocentre, but it closed down in 2017 less than 18 months after opening.
It has been reported that three potential buyers are involved in the sale talks.
The chain was founded by Tom Byng in 2007 but was purchased by current private equity owners Three Hills Capital in 2017.
However, it launched a Company's Voluntary Arrangement (CVA) restructuring deal, which saw the closure of 10 sites and reduced rents in order to support it after a downturn in trading.
Despite talks over the potential sale and administration, it is understood that the company intends to begin the phased reopening of sites next month.
Restaurant chains have been particularly hard hit by the coronavirus crisis, with Cafe Rouge owner Casual Dining Group filing its own notice to appoint administrators in recent weeks.
Despite widespread financial restructuring of major restaurant chains over the last couple of years, the overall number of restaurants still rose by 2% last year according to the real estate adviser Altus Group.
The number of properties classified as restaurants for the purpose of business rates in England and Wales increased by 563 to 27,995 at the end of 2019 and are up a further 183 to 28,178 during the first six months of 2020 despite the coronavirus lockdown.
