A major burger chain that rivals the likes of McDonald's and Burger King is set to shut half of its UK stores in a major restructuring move. The burger joint, which offers a more upmarket take on its budget rivals, is said to be closing 10 of its 21 restaurants.
Byron burger's Manchester restaurant is situated in Piccadilly Gardens. It's yet to be confirmed if the branch will be one of those set to close.
Earlier this week a report by Sky news announced the news. It has been reported that the owners of the Byron investment firm, Calveton, are set to strike a possible deal with the burger chain’s administrators, Interpath Advisory, this week. Sky News cited "insiders" as saying a deal could be reached in the coming few days and the deal is reported to be a "pre-pack administration".
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The report doesn't suggest how many jobs could be lost in the restructuring. The possible administration would come barely two years after the chain’s last failure when it closed 31 of its sites at a cost of around 650 jobs. It appointed administrators and the London Mayfair-based investment firm took over.
At the time, the burger chain operated more than 50 restaurants and was majority-owned by Three Hills Capital Partners. The company was then downsized as part of that administration and taken under the control of Calveton, although Three Hills still retains a minority stake.
Byron has had a tough few years as it first ran into real trouble in 2018 when it went through a restructuring exercise to erase its hefty debt burden and closed underperforming restaurants. Byron opened its first site in the UK in 2007 and grew very quickly, at its height had more than 60 sites in the UK, employing around 1,800 people.
The burger chain was part of the "casual dining" phenomenon which took place in the late 2000's and early 2010's. A number of chains, such as Bella Italia, Cafe Rouge, Gourmet Burger Kitchen (GBK) and Pizza Express have faced similar financial troubles as Byron.
These restaurants are all examples of successful, small restaurant brands that expanded far too quickly which created a fragile business model that was sustainable with the pandemic hitting these businesses hard. With a recession looming, the current financial forecast looks bleak for businesses in the UK and this may not be the only case of administration or insolvency we see over the next year.
Manchester Evening News contacted Byron for comment earlier this week. The chain is yet to respond.
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