Caffè Nero defended its CVA and restarted store growth

Caffè Nero's city-centre and transport-hub estate was hit hard by lockdown footfall losses. The company chose a company voluntary arrangement, backed by more than 90% of creditors, while rejecting a late takeover bid.

The CVA remained contested by landlords, but it gave the chain time to reopen, repay a £12.2 million liquidity facility and clear bank loans borrowed during the coronavirus crisis.

The recovery became visible in FY24. The Nero Group reported $680 million of sales, 13% overall growth, $63 million of EBITDA and 61 new stores, while the UK business grew sales from £302 million to £333 million.

FY24 sales rose 13% to $680M, EBITDA rose 20% to $63M, and the group added 61 stores.

The estate had many stores in places where lockdown and hybrid work hit traffic first.

Creditor support mattered because rent arrears, not brand demand alone, threatened the company.

Rejecting a takeover kept the founder-led operating model intact through the restructuring.

Once traffic normalised, management restarted openings instead of staying in defensive mode.

A restructuring is not only a debt event; it must preserve enough operating control for the founder or team to restart expansion.

Caffè Nero entered FY25 with record first-eight-month results, like-for-like sales up 7.4%, overall sales up 13%, and 324 stores outside the UK. The CVA did not make the recovery automatic, but it preserved the platform that could grow again.