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Prezzo restaurant chain to close 94 outlets

Prezzo restaurant chain to close 94 outlets
From BBC - March 23, 2018

Creditors of Italian restaurant business Prezzo have backed a restructuring plan that will see it close 94 outlets - about a third of the chain.

It is estimated the move could lead to 500 job losses. The chain, which is owned by private equity firm TPG Capital, employs about 4,500 people.

Prezzo is closing all 33 outlets of its TexMex chain Chimichanga.

Under the rescue plan, rents will be cut by between 25% and 50% at 57 sites.

The closures and rent reductions aim to repair Prezzo's financial position and allow it to continue trading.

The deal was struck under a restructuring arrangement know as a company voluntary arrangement (CVA) - a step short of going into administration.

Jon Hendry-Pickup, chief executive of Prezzo, thanked the company's creditors and landlords for their support.

He said: "While we continue to be profitable, the pressures on our industry have been well documented. Despite this being a tough decision, the support given today by our creditors shows that they believe we have the right approach to transforming Prezzo in the eyes of teams, customers and stakeholders."

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