The coffee shop chain Caffe Nero is on the brink of insolvency, and has blamed the second national lockdown for its plight.
Its owners have sought a Company Voluntary Arrangement, a form of insolvency that allows firms to continue trading while they attempt to get their finances in order.
Chief executive Gerry Ford said that it was now “imperative” that the business takes steps to reduce pressure, as its cafes in England were forced to close for a second time this year.
Ford said: “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.”
Founded in 1997 by Ford, Caffe Nero runs some 800 branches in the UK, employing about 6,000 people. It has expanded into 11 countries, with a total of 1,000 cafes.
