Sushi chain exploring insolvency mechanism.
Yo! Sushi (now called Yo!) is the latest restaurant chain to consider exploring the potential for a company voluntary arrangement (CVA) in the wake of the coronavirus, reports Sky News.
In July SalmonBusiness reported that rival sushi chain Itsu, which was founded in 1997 by the Pret A Manger co-founder Julian Metcalfe, was working with advisory firm AlixPartners on its options, which could include carrying out a company voluntary arrangement (CVA).
Yo! has appointed Deloitte as advisors. Sky News quoted an unnamed source who told them that a formal decision to proceed with a CVA has not yet been taken, but “without meaningful bilateral concessions from landlords, the company would have little choice but to pursue one.”
The economic upheaval created by COVID-19 has seen many chains request significant rent reductions or rent-free periods to stay afloat.
Yo! has 70 restaurants in the UK. In 2019, the sushi conveyor belt chain acquired a majority stake in SnowFox in a USD 100 million deal to expand in the US, also gaining Bento Sushi and Taiko Foods.
Cooke Aquaculture Scotland is YO!’s UK supplier.