Clucky escape: Nando’s avoids £300m debt default
Lenders have given Nando’s some breathing space to avoid it defaulting on a £300m debt pile after being hit hard by pandemic-led restrictions.
Banks including NatWest, Barclays and Santander have agreed to waive the testing of loan covenants in May, the Telegraph first reported, a move that helped Nando’s avoid defaulting.
Covid restrictions have seen many of the chicken restaurant’s sites closed for long periods of time in the last 15 months, hitting the company’s bottom line hard.
Hospitality has been one of the hardest hit sectors, and in December, Nando’s warned it would breach covenants in May in a worst-case scenario.
Sources told the Telegraph that there was growing optimism at the restaurant chain, with trading during the third lockdown boosted by strong demand for takeaways.
Nando’s declined to comment.