Burger chain Byron has filed a notice of intention to appoint administrators as the coronavirus crisis’ impact on the restaurants sector was laid bare.
Accountancy giant KPMG has been running a sale of the company since early May and talks with three unnamed potential buyers are ongoing.
Sources said the company is confident it will seal a deal for Byron, which has 1200 staff, most likely through a pre-park administration. The administration process would protect the business from being taken over by its creditors.
Causal dining chains were struggling before the onset of the Covid-19 pandemic, which then forced them to shutdown in March.
Restaurants in England outside Leicester, which is subject to a two week lockdown extension, are allowed to reopen from Saturday. Byron was planning a phased reopening of its 51 UK sites from Mid-July according to Sky News, which broke the administration news.
The chain's largest shareholder is Three Hills Capital Partners, which helped wiped out the company's debts in 2018 through a restructuring which ensured it could keep trading.
Byron is one of a string of chains to hit difficulties due to a crunch on consumer spending and higher costs, which was then exacerbated by the coronavirus outbreak. Cafe Rouge owner Casual Dining Group, which has 250 restaurants, filed a notice to appoint administrators in May.
Byron and KPMG declined to comment.
