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Wed 29th Apr 2020 - Busaba appoints advisors to explore options
Busaba appoints advisors to explore options: Busaba, the Thai chain founded by Alan Yau, has appointed advisors as it looks at securing new investment or a buyer, Propel has learned. The Terry Harrison-led group, which operates 13 sites in the capital, is understood to have appointed KPMG to help it assess options, which if new investment doesn’t come forward could include a restructuring of the business and a possible company voluntary arrangement. It is thought the business has small reserves of cash to keep it going for the short-term, but needs a cash injection for the mid to long-term. It is believed to have look at the government schemes available, but does not qualify under the Coronavirus Business Interruption Loan Scheme. A request to extending its business loan facility is also thought to have been declined. Most of the company’s staff have been furloughed. The company is understood to be working on a plan to get back on its feet, starting with the reopening of a couple of sites for takeaway only tomorrow (Thursday, 30 April). The company restructured its finances in May last year in the wake of its acquisition by Muzinich, which resulted in a reduction in loan note debt and additional facilities of £1.4m to support the ongoing development of the business and restructuring costs. The company reported it had sub-let a closed site in Manchester and assigned the lease of a closed site in St Albans – a leasehold site in Liverpool was previously assigned. It had been seeing some pick-up in trading over the past 12 months through a redesign and a refresh of its offer. Busaba was founded in 1999. Phoenix Equity Partners made a £21.5m investment in the then three-strong business in 2008.



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