Debt restructuring saves four Brighton restaurants

Four Brighton restaurants may have a more secure future after their debt-burdened owner agreed a deal with creditors.

Strada has been put up for sale by the Tragus Group which also owns Bella Italia and Café Rouge.

Tragus started talks with creditors, many of them landlords, just over two weeks ago and has now persuaded them to accept a company voluntary agreement (CVA).

A CVA usually involves creditors writing off some of the money that they are owed or accepting payment over a longer period at a reduced rate.

The company said that it had already received expressions of interest for the Strada chain which includes the restaurant in North Street on the corner of New Road, Brighton.

The local branch of Bella Italia is in Market Street, opposite the branch of Café Rouge in Prince Albert Street. There is another Café Rouge at Brighton Marina.

Tragus Group chief executive Steve Richards said: “We are pleased that creditors have accepted our proposals to create a more operationally efficient business.

“The future looks bright for Tragus and we are now able to focus on investing in and revitalising the Bella Italia and Café Rouge brands and pushing ahead with the sale of Strada.”

The company hopes to complete the sale of Strada by the end of the summer.

A deal would leave Tragus with about 200 sites and debt reduced from £362 million to £91 million.

When the CVA proposal was announced Mr Richards said: “The core of our business is strong. We have a loyal customer base and valued brands but some of these brands, such as Bella Italia and Café Rouge, require innovation and substantial investment to secure their futures.

“Similarly, Strada is a popular restaurant brand beloved by customers, but it needs separate attention and investment to realise its full potential.

“The plan we have announced is crucial for reducing the group’s unsustainable level of debt, providing the right operational structure for the business and securing a strong and sustainable future for Tragus and all of our brands.”