Casual dining chain, Ibérica has undergone a Company Voluntary Arrangement (CVA), which has resulted in the closure of two sites but has saved around 135 jobs.
The restructuring plan sees the restaurants in Glasgow and Manchester close for good, leaving five outlets, fours in London and one in Leeds.
Marcos Fernandez Pardo, chief executive at Ibérica, commented, 'We're pleased to have reached an agreement that's in the interest of all parties. 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.'
The CVA negotiations 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.
Gordon Thomson, director at RSM Restructuring Advisory LLP, said, ‘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.
'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 chain, which was launched in 2008, is about to launch a new menu, one of the new dishes is Hake with cider and mussels; a typical dish from Asturias (pictured).