The backers of Jamie’s Italian restaurant chain have agreed to rent cuts and site closures in a move aimed at preventing the under-pressure business from collapsing entirely.
The eatery, owned by the celebrity chef Jamie Oliver, has secured backing from 95pc of its creditors to slash its rent bill and close some sites as part of a company voluntary agreement (CVA) after hiring AlixPartners to help restructure.
Landlords have been split into four categories as part of the CVA depending on how profitable the sites are. The 18 best performing restaurants will continue to pay full rent but will move to doing so on a monthly rather than quarterly basis. A second group of 11 will take a rent cut of 30pc.
The third band of 13 landlords will see their payments cut by 75pc and Jamie’s Italian only plans to pay this until May because the sites are either loss-making of forecast to become so soon and so will be closed. The outstanding four sites operated by the company will receive nothing because Jamie’s Italian has already ceased trading from those locations.