Tasty PLC, a casual dining business listed on AIM, faced sustained financial challenges from declining high street footfall, Brexit-related labor constraints, and Covid-19’s lasting effects. Rising energy costs, inflation, and the cost-of-living crisis further hit profitability, with losses funded through equity investment. Despite exiting unprofitable sites, many remained loss-making. FY23 results showed £47m in sales but an LBITDA of £0.9m, with further losses projected. Under mounting financial pressure, management concluded the business could not continue in its current form and required financial restructuring. Navigating financial challenges in a changing market
In November 2023, FRP was engaged to evaluate restructuring options for Tasty Plc. Our review identified a Part 26A Restructuring Plan as a viable path forward, allowing the group to exit underperforming locations while compromising associated lease and rating authority liabilities. Working closely with FRP, Tasty implemented a structured plan involving the closure of 20 sites, securing new equity investment from a third party, and compromising various financial obligations. Crucially, this strategy ensured the retention of the group’s AIM-listed status, protecting its market position. Additionally, FRP’s Valuations team conducted an extensive valuation to assess the expected outcomes of the restructuring alternatives. Restructuring Plan to stabilise and strengthen the business
The Restructuring Plan was sanctioned by the court in June 2024, enabling Tasty Plc to reposition itself for future success. Post-restructuring, the business now operates from 30 sites, with projected sales of £34m and an EBITDA of £1.2m. By securing financial stability and streamlining operations, the company is now better positioned to navigate market challenges while maintaining its public listing. The strategic intervention allowed for a sustainable turnaround, ensuring Tasty Plc remains a competitive player in the casual dining sector. A successful outcome, for a leaner, more profitable business
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