Abokado Use Pre-Pack To Restructure
Restaurant group, Abokado, use a Pre-Pack to restructure into a new company, Montway Holdings, according to Companies House.
Having failed to open their doors after the last lockdown. Mark Lilley, a co-founder of Abokado. Appointed Geoffrey Bouchle and Benjamin Wiles of Duff & Phelps, to then carry out the pre-pack administration sale, allowing the business to move forward.
As part of the deal, Mark Lilley has purchased nineteen restaurants under his newco.
Abokado had placed the company up for sale in June 2020. However, ongoing cost and leases meant the previous company was unable to raise additional working capital, to recommence trading.
Changes in the dynamics of office attendance in London, affected directly by the pandemic and the geographical locations of the restaurants, meant its clients had diminished.
Sadly, approximately eighteen months ago, the group then announced plans to grow the business. The group later that year though entered a company voluntary arrangement, allowing to clear out those restaurant sites no longer required as unprofitable. Further issues happened after seeing a drop in turnover.
To quote Abokado new website:
“Their menu remains a melting pot of fresh flavours inspired by the Pacific. From the east coast of Australia to the west coast of southern California. We’re not preachy or righteous about healthy food, we believe in balance and use only the freshest ingredients”.
If your companies are experiencing financial difficulties due directly to the recent Coronavirus COVID19 Pandemic? Consider if a Pre-Pack Administration would ensure the business may survive once restructured. Viability moving forward together with new funding is paramount for the process to be considered. Directors should not just trade on while increasing debt to creditors.
For further help and support, please contact HBG Advisory on 0800 612 5448 or book a VIRTUAL meeting online.