Fast food chain serving ‘best burgers’ and rival to Five Guys saved from closure

A FAST food chain known for serving the “best burgers” has been saved from closure.

Patty & Bun has agreed a Company Voluntary Arrangement (CVA) with insolvency specialists Valentine & Co in a bid to sort out its finances.

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The burger chain owes its creditors – anyone that a business might owe money to – more than £1.7million.

A CVA doesn’t mean that a company has gone bust.

Instead, it allows firms that have run out of cash to look at ways to save the business, such as reducing rent rates with landlords.

Companies often agree a CVA to avoid insolvency, which can lead to closures or the whole business going bust.

But Patty & Bun’s agreement means that its site can continue to trade as normal.

The chain has eight branches in London and one in Brighton as well as two pop-up sites.

The agreement will see Patty & Bun pay 71p in the £1 to its unsecured creditors, including landlords and suppliers.

Meanwhile, it has reached a separate agreement with HMRC for the £1.4million it owes.

It comes after Patty & Bun closed its branch in Notting Hill.

The Sun has asked Patty & Bun and Valentine & Co for comment and we have asked if there will be any closures following the CVA.

Patty & Bun opened its first branch in James Street, London in November 2012.

Fans flock to its restaurants for its wide range of burgers, including the Smokey Robinson and Hot Chic chicken burger, along with its extensive vegetarian and vegan menu.

But the chain isn’t the only burger joint that’s fallen on hard times this year.

Soaring costs across the board and pressure on household budgets have hit the hospitality industry hard.

Byron Burger fell into administration in January and closed nine restaurants as a result including those in Leeds and Manchester.

Famously Proper, which owned Byron, said 218 jobs would be lost as a result of the closures.

Its collapse was blamed on rises in costs, such as food and energy bills, as well as a reduction in consumer spending due to the current cost of living.

But it’s not all bad news for fast food fans as Honest Burger is looking to open a new chain of cut-price fast food restaurants.

The chain is looking to rival Five Guys and Shake Shack, according to The Times, with the first branch set to open in central London early next year.

Plus, Five Guys is planning to open 140 new burger restaurants in the UK, according to This Is Money.

Meanwhile, fans of the popular chain Wagamama will be thrilled to know that the company is planning on opening more sites in the UK.

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This post first appeared on thesun.co.uk