Ibérica CVA saves 135 jobs

Spanish tapas restaurant Ibérica has undergone a Company Voluntary Arrangement (CVA), which has saved 135 jobs after securing approval from more than 99% of creditors and all landlords.

Although Ibérica’s four sites in London and one in Leeds will continue to operate, the restructuring will see the closure of its Glasgow and Manchester restaurants.

The CVA was approved in late September, and involved the introduction of a flexible rent period whereby landlords will offer a rental concession up until the end of July 2021.

During this period sites will concede quarterly rent in arrears amounting to 10% of their ongoing revenue.

“We’re pleased to have reached an agreement that’s in the interest of all parties,” says Marcos Fernandez Pardo, CEO at Ibérica.

“We’re thankful to all of our landlords, Santander and our creditors who entered this process with an open mind and in good faith.

“Our combined efforts to allow flexibility to sustain this period of uncertainty, protecting the interests of all stakeholders, have secured an arrangement that we believe secures the future of this organisation, and its continued success.”

“It’s hard to overstate the unpredictability and nature of the challenges that this sector faces, especially in central London which continues to suffer from low footfall,” adds Gordon Thomson, director at RSM Restructuring Advisory LLP, the firm which advised the group.

“Ibérica has a business model that is credible and sustainable in the longer term – the approval of this CVA and the creativity and buy-in involved, with the overwhelming support of the landlords and wider creditors, is testament to that, and shows how stakeholders are prepared to support businesses with a compelling operating model until the trade returns.”

The restaurant group is owned and operated by Ibérica Food & Culture Limited.