YO! announces CVA and restaurant closures

YO! has today confirmed (14 August) it will enter into a CVA, resulting in the closure of 19 of its 69 restaurants and the loss of 250 staff.

The BBC reports that the current climate and “changes in consumer behaviour” are to blame for unsustainable rents at some of its estate:

“Like the rest of the sector, we need to take decisive action to adapt to the lasting changes that the covid pandemic has brought about,” says YO! CEO Richard Hodgson.

“While it’s been a very difficult decision to make and I am very sorry that it will mean losing many of our team members, a CVA has become an essential measure to secure our business for the future, and enable us to protect as many jobs as possible.”

It is understood that the restaurants to close have been loss-making, and include buildings where YO! remains the tenant and legal rent-payer, but is not currently operating.

In better news for the Asian kaiten concept – the business recently announced a new contactless format at nearly 20 of its sites, with more venues to follow.

The business is taking part in the government’s Eat Out to Help Out scheme.

Other national restaurant groups to announce a CVA plans in recent weeks include PizzaExpress, Byron and The Restaurant Group.