FAMOUS BRANDS LIMITED - Voluntary Announcement To Shareholders

Voluntary Announcement To Shareholders

Famous Brands Limited
(Incorporated in the Republic of South Africa)
(Registration number 1969/004875/06)
Share code: FBR
ISIN code: ZAE000053328
("Famous Brands" or "the Company" or “the Group”)


Voluntary Announcement To Shareholders

This statement serves to update shareholders on the status of
two matters referred to in recent Company announcements
published on the Stock Exchange News Service of the JSE Limited.


GOURMET BURGER KITCHEN LTD (“GBK”): STATUS OF COMPANY VOLUNTARY
ARRANGEMENT (“CVA”)

Shareholders were advised on 24 October 2018 that in light of
GBK's continued underperformance in the current macroeconomic
environment in the UK and deteriorating financial position, the
Board of GBK had initiated a CVA process aimed at restructuring
the business’s leased property portfolio in line with current
market valuations.

On 9 November 2018, shareholders were further advised that a
creditor’s meeting was held to consider the CVA proposals. At
the meeting, the CVA proposals were approved by the requisite
majorities of the unsecured creditors of GBK. In terms of the
relevant legislation in the United Kingdom, unsecured creditors
have a 28-day period from the date of lodging the result with
the authorities, in which to apply to court to challenge the CVA
proposals. The result was lodged with the authorities on Monday
12 November 2018.

The Board can confirm that no objections were raised during the
28-day challenge period, which concluded on 10 December 2018,
thus completing the process.

In terms of the CVA, fourteen of the seventeen severely under-
performing restaurants identified as part of the remedial
process have ceased trading. While the other three sites have
improved their performance, they remain under review, pending
further action.

The Board is satisfied that the CVA programme will achieve its
goal of promoting the long-term financial viability and
sustainability of the GBK business.
SUCCESSFUL RESTRUCTURE OF DEBT FINANCE

The Board is pleased to advise shareholders that in line with
the goal to restructure the Group’s debt profile to better align
with the business’s requirements, the existing debt has been
successfully refinanced with effect from 10 December 2018. The
restructuring will ensure appropriate levels of debt and optimal
capital allocation aimed at facilitating growth of the business
and improving returns to shareholders.

Detailed    information regarding this new structure will be
published   in the Group’s Audited Annual Financial Statements for
the year    ending 28 February 2019 which are expected to be
published   on or about 29 May 2019.

Midrand
11 December 2018

Sponsor
The Standard Bank of South Africa Limited

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