Coffee chain Caffe Nero is reportedly close to agreeing restructuring deal that could involve store closures and redundancies across the UK.
The chain's lenders have drafted in financial advisers to help restructure the business amid the ongoing pandemic, according to Sky News.
Alcentra and Partners Group, which provide mezzanine debt to Caffe Nero, have drafted in FTI Consulting to advise them on the implications of a company voluntary arrangement (CVA).
Sources said that Caffe Nero would hold talks with the British Property Federation, which represents commercial landlords, on Friday to discuss the CVA plans.
A CVA would enable Caffe Nero to reduce its rent liabilities and close its most under-performing stores to help the business survive the current crisis.
The company operates 660 stores across the UK, more than 90% of which had reopened since the original UK-wide lockdown ended in June.
The group, which is owned by Gerry Ford, is said to have been performing strongly prior to the COVID-19 crisis.
It employs about 5,000 people and says it serves 135 million customers annually.
Mirror Money has contacted Caffe Nero for a comment.
In September, the chain said: "It has been a difficult period since lockdown measures were introduced by the government and we're working incredibly hard to navigate our way forward.
"As part of this, we are working closely with advisors to help review our options and assist with our ongoing negotiations with landlords."
The company, which was founded in 1997, last year recorded profits of more than £23million.
