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FRP has revealed it supported restaurant group Tasty PLC (Tasty) in becoming the first AIM-listed company to successfully secure a Restructuring Plan.
The London-headquartered business – which is behind the dim-t and Wildwood restaurant chains – faced an uncertain future after “persistent” difficult trading conditions impacted its profitability. The business subsequently pursued a Restructuring Plan, a set of procedures and measures that were introduced as part of the Corporate Insolvency and Governance Act 2020 to better support companies in financial distress.
Led by Restructuring Advisory partner, Phil Reynolds, a multidisciplinary team from FRP comprising restructuring, financial advisory and valuation specialists worked to provide Tasty with a strategic review of the business and reshape its business model to return to profitability and secure a long-term future, while delivering the best possible outcome for all stakeholders.
With legal support led by Sarah Teal of Shoosmiths LLP and Matthew Weaver KC of Radcliffe Chambers, the team also assessed the potential outcomes for stakeholders in alternative scenarios and provided a valuation of the business.
Tasty’s board expects the Restructuring Plan to help enable a “significant improvement” in profitability, and ensure transformation to meet new opportunities in the sector, including new audiences, concepts and potential partnerships.
Reynolds said: “Since their introduction in 2020 we’ve seen Restructuring Plans provide more and more businesses with a viable alternative to the insolvency process. This case is just the latest example of how effective it can be in providing a better outcome for all stakeholders, including where a company is AIM-listed.
“Tasty now has the platform it needs to pursue its strategy for future growth. We look forward to seeing how the business continues to develop in the years ahead.”
