Drake & Morgan CVA approved
The Bowmark capital-backed group, a business operating 22 venues across London, Manchester and Edinburgh, announced the proposal – which will result in the closure of the Allegory and the Listing, in London as well as the Refinery in Spinningfields, Manchester – last month (May).
The firm said all team members in affected sites would be offered alternative roles within the business.
“We wish to thank our landlords, suppliers, business partners and other creditors for their support,” Jillian MacLean, founder and CEO of Drake & Morgan said.
“The approval of the CVA means we can look forward to strong growth and begin rebuilding the business on a positive financial footing.”
Drake & Morgan's CVA approval comes just weeks after Suffolk-based brewer and pub operator Greene King had a CVA approved by creditors for its Loch Fyne business, according to reports by MCA Insight.
What's more, Revolution Bars Group also had a CVA for subsidiary Revolution Bars Limited approved in November 2020 leading to the closure of six sites.
‘Incredibly challenging’ year
In March, Drake & Morgan’s chief financial officer Dave King outlined his aspirations to rebuild the bar and restaurant group in parallel with the easing of pandemic restrictions, according to reports by The Morning Advertiser’s sister title MCA Insight.
The comment from King, who joined from Fuller’s, came on the back Drake & Morgan’s latest financial update, which revealed adjusted full-year pre-tax profit of £1.5m, down from £1.9m the previous year, for the year ended 29 March 2020.
Adjusted EBITDA fell from £6.3m to £4.3m while turnover also dipped from £56m to £50.2m.
At the time, King said the year had been “incredibly challenging” for the sector.
“The run-up to lockdown one and the subsequent closure of hospitality significantly impacted trading,” he said.
However, with high demand for its al fresco terraces from 12 April and the further easing of restrictions on 17 May, he said he was “looking forward to re-building the business”.
