YO! Sushi secures CVA approval

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Major sushi player can push on with new concept roll out.

Propel reports that YO! is now pushing on with the rollout of its new “kaiten” conveyor belt format to the rest of its estate, after securing approval on Tuesday for its company voluntary arrangement (CVA).

In August, it was reported that the sushi chain will shut down 19 restaurants, costing around 250 jobs across the UK, as part of a company-wide restructure.

Also, last month, Sky News reported that the chain had been exploring the potential for a company voluntary arrangement (CVA) to negotiate rents with its landlords as “without meaningful bilateral concessions from landlords, the company would have little choice but to pursue one.”

The CVA will address the nine sites YO! no longer operates but where the company is legally responsible for the rent, reported Propel.

Chief executive Richard Hodgson told the publication he was relieved the CVA had been approved and the jobs of 1,000 members of staff across the UK had been secured. “Sadly we have had to say goodbye to 250 of our team members across the country, but I am relieved we have been able to protect as many jobs as possible, securing the future of 1,000 team members. There are some challenging weeks, indeed quarters ahead, and yesterday was certainly quieter than the previous week, with the Eat Out To Help Out scheme coming to an end. We have tried to be fair with our landlord partners, and we haven’t looked for any rent reductions through this process, just to exit those sites that had become unviable. There will be more challenges ahead but we are now in a better position to face them.”

Yo! will now push on with converting its “kaiten” iconic conveyor belts to a new format over the next few weeks. The ‘kaiten’ belts been reprogrammed so that dishes are only dispatched once orders have been placed.