Closures considered for Cote-owned restaurant brands
Cote bought the Jackson & Rye and Limeyard brands in 2016.
Restaurant group Cote is considering closing a handful of sites as part of a restructuring plan, the latest sign of distress on the British high street.
Cote, which is owned by private equity firm BC Partners, bought the Jackson & Rye and Limeyard brands in 2016, but is now looking at closing outlets to save on costs.
One restructuring option open to the group would be a company voluntary agreement (CVA), a route that has been pursued by a number a restaurant chains and retailers this year.
As a result of recent and well documented headwinds for the restaurant sector we have taken the decision to explore a range of options for a very small number of Jackson & Rye and Limeyard restaurants Cote
A CVA would have to be approved by landlords, but would allow Cote to cut its rent bills and shut stores. The company has not said how many staff would be affected.
A spokesman said: “As a result of recent and well documented headwinds for the restaurant sector we have taken the decision to explore a range of options for a very small number of Jackson & Rye and Limeyard restaurants.
“In some instances we have closed or sold outlets and we are working hard to find viable options for others while continuing to support those that are trading well.
“Our Cote restaurants continue to perform well which is a testament to the strength of that offer in what remains a very challenging environment.”
Limeyard has two outlets, and the Jackson & Rye chain comprises four restaurants.
Rising costs and a squeeze on consumer spending has hit a number of high-profile restaurant groups, forcing a spate of restaurant closures.
In February, Jamie’s Italian confirmed it was closing 12 restaurants in a CVA. It was followed a month later by Prezzo, which announced plans to shut 94 outlets under a similar agreement.