Tue 4th Jun 2024 - Wildwood operator receives creditor and landlord approval to push ahead with restructuring plan Wildwood operator receives creditor and landlord approval to push ahead with restructuring plan: Wildwood operator Tasty has received approval from its creditors and landlords to push ahead with its restructuring plan to secure its long-term future. The company revealed proposals in April to exit around 20 loss-making sites after a “challenging “ state to its new financial year. The group also said it plans to enter into a £750,000 loan agreement to fund the restructuring plan and to provide additional working capital, “to stabilise the company in FY 2024 and to meet new opportunities in the sector in FY2025 beyond existing operations”. The loan agreement is with Will Roseff, a UK-based high net worth investor, chartered accountant, and director and shareholder of bet365. The plan received approval from its secured creditor, category B and category C landlords and category A and category B authority creditors. The company's category C authority creditors and non-critical creditors abstained. Under the restructuring plan, creditors will receive an estimated dividend of 4.17p in the pound (such aggregate sum to be paid in three equal tranches in August 2024, March 2025 and June 2025) from a Compromised Creditors' Payment Fund (being a trust account for the benefit of those Plan Creditors that have an allowed plan claim, established and funded by the company to the sum of £525,000); plus payments from a Restructuring Surplus Fund, including 10% of the amount by which the group Ebitda increases from the sanction of the restructuring Plan to 31 December 2024 and a possible payment from the Upside Fund if the group exceeds its forecasted Ebitda from the sanction of the restructuring plan to 31 December 2024, 50% of any increase over forecast will be paid in March 2025. In connection with the restructuring plan, Tasty has committed not to pay a dividend to shareholders in 2024 or 2025. The company stated: “The restructuring plan, alongside a number of additional measures to be implemented across the group, has restructured the group to enable it to return it to profitability and secure its long-term future, in order to deliver the best outcome for stakeholders. Prior to the sanctioning of the restructuring plan, the group held 54 sites comprised of 43 Wildwood, six dim-t branded sites, two non-trading sites and three sub-let sites. The implementation of the restructuring Plan has enabled the company to (i) compromise 23 leases (including two previously closed sites and three sub-let sites) and (ii) compromise the claims of a number of non-critical unsecured trade creditors. The board expects the restructuring plan to enable a significant Ebitda improvement of up to £2.1m between FY2023 to FY2025 through site rationalisations and other tangible cost savings, including head office savings of £0.6m per annum and expected lease savings from exited sites in FY 2024 of £2.1m. The Loan and RP are expected to stabilise the company in FY2024 and ensure transformation to meet new opportunities in the sector in FY2025 beyond existing operations, including exploring new audiences, new concepts and potential partnerships. Following completion of the loan agreement announced on 9 April 2024 and sanction of the restructuring plan, the group is currently operating 38 restaurants with FY2024 Ebitda expected to be £0.3m. Revenue of approximately £33.4m and cash generation of approximately £1.3m is expected in FY2025, with the loss in FY2023 of £0.9m expecting to improve to a £1.2m profit in FY2025.” Tasty also said the group's audit is “progressing well” and expects to announce FY2023 results this month. Tasty features in the Premium Club Turnover & Profits Blue Book, which features 912 companies. Tasty’s turnover of £46.9m is the 213th highest in the database. The Blue Book ranks companies by turnover, profit and profit conversion, listing directors’ earnings for the past five years. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.