Almost a third of Byron burger restaurants are at risk of closure in a bid to turn around the chain’s fortunes.
The struggling food chain could close up to 20 restaurants as part of a restructuring process known as a company voluntary agreement (CVA).
About 1,800 people are employed by the chain, which runs 67 restaurants across the UK.
The company has set apart 20 sites where it will pay a reduced rent for six months as it holds talks with landlords over their future. At least some of the restaurants on those sites are expected to close.
“Byron's core restaurant business and brand remain strong but the market that we operate in has changed profoundly,” Byron chief executive Simon Cope said.
"In order to continue serving our loyal customer base, we need to make some critical and difficult changes to the size and shape of our estate.”
Accountancy giant KPMG, which is overseeing the process, said no restaurants will close on day one, adding that employees, suppliers and business rates will continue to be paid on time and in full.
After a decade of growth, some of Byron’s restaurants were underperforming on expectations, the firm added.
Will Wright, restructuring partner at KPMG, said: “With gathering economic headwinds starting to impact the sector more profoundly, the directors embarked upon a strategic review of the business as a means of safeguarding its long-term future.
“As part of this strategic review, the directors have been successful in negotiating a financial restructuring with the company's lenders and shareholders, which will enable new investment to come into the business.”
