Making a meal of it: EAT could close portion of 100-strong portfolio as competition bites
High street sandwich shop EAT has become the latest food chain to consider closing a raft of stores.
The 100-strong chain is looking at restructuring ts portfolio, with a possible company voluntary arrangement (CVA) on the table, according to Sky News.
It follows the likes of Byron and Jamie’s Italian, which have both been forced to reorganise their portfolios as a result of greater competition and soaring costs.
KPMG is understood to have been brought in several months ago to look at options for EAT, which is majority-owned by Lyceum Capital, which last month slimmed down its investment team after its latest fundraise flopped.
According to the most recently available accounts, the business is still profitable, despite rising competition from other food-to-go operators such as Pret a Manger, Itsu, and Leon.
KPMG declined to comment.
Read more: Jamie’s Italian restaurants could face the chop in new restructuring plans
Square peg round hole
KPMG’s team has been kept busy with administrations and restructuring deals this year. Partners already oversaw the CVA of Byron burger, which creditors voted through last week.
Yesterday it also emerged that KPMG had been appointed joint administrators of Square Pie, a small pie chain which has several sites in London including at the O2 and Westfield Stratford City.
Rob Croxen, partner at KPMG said: “These are tough times for companies in the casual dining sector as operators continue to contend with rising input costs, fragile consumer confidence and the impact of the Living Wage.”
Read more: Why The Restaurant Group’s CEO isn’t too worried about sales falling