Cafe Rouge Owner Mulls Rent Cuts to Drag Itself Out of the Red

Casual Dining Group, a KKR-owned company that runs continental-themed mass market restaurants brands in the U.K., is weighing cutting costs with its landlords and filing for administration, according to a person familiar with the matter, Bloomberg News reported. The owner of Cafe Rouge and Bella Italia, and employer to 6,000 people, said on Monday it hired advisers AlixPartners and law firm Kirkland & Ellis as it mulls alternatives to address liabilities that were last reported at near $300 million one year ago. The group’s 250 restaurants in the U.K., familiar sights across British town centers, have remained closed since late March when the government imposed a lockdown to stem the spread of Covid-19. One of the options being considered is a so-called company voluntary arrangement, a type of U.K. insolvency process, which would allow the company to lower rents if at least 75% of its landlords agree to it, the person said, asking not to be identified because the matter it’s private. Read more