The coffee chain was last night forced to put itself into a Company Voluntary Arrangement, a type of insolvency that allows firms to continue trading while they attempt to get their finances in order.
Founder Gerry Ford, 62, said the second lockdown had pushed the company to act. The chain has suffered from curbs on socialising, fewer shoppers in town centres and the government advice for workers to stay away from their offices.
Mr Ford, who set up the business in 1997, has appointed leading accountants KPMG to advise on the CVA.
Caffe Nero (store pictured) has become the latest high-profile business casualty of the Covid-19 pandemic – with the second national lockdown being blamed for its plight (file photo)