CVA's are on the rise in the restaurant sector with not only Carluccios taking this route but also Prezzo and Byron too. CVA's also pose licensing considerations that shouldn't be overlooked. The Licensing Act 2003 dictates that on entering a CVA the premises licence will lapse with immediate effect There are 3 main options for the Premises Licence: 1) let it lapse - if the premises are closing this is most likely 2)transfer the licence prior to the CVA to a company which is not entering a CVA 3) transfer the licence immediately after the CVA. The Act allows the licence to be resurrected if a transfer application is made within 28 days of the CVA. So with timing and preparation the licensing position can be preserved but without it the ability to sell alcohol may be lost.
Carluccio’s is to begin a £10m revamp of its restaurants after approving restructuring plans to close almost a third of its estate. Landmark, the Italian chain’s Dubai-based owner, will invest up to £250,000 at over 60 sites to overhaul the menus, design and service. On-going food development at the company will also be overseen by a new senior management team. It comes after Carluccio's entered in to a Company Voluntary Agreement (CVA) in May that will see it close up to 30 of its 103 restaurants.