Italian chain Prezzo confirmed this week that it is closing 94 restaurants.
The company has launched a company voluntary arrangement (CVA) which states that it will close branches which would not be profitable even with a rent reduction. Landlords for another portion of the estate will be asked to consider a reduced rent.
Jon Hendry-Pickup, CEO of Prezzo, said yesterday: “Prezzo’s core business today is fundamentally strong and has fantastic potential. However, the well-documented pressures on our industry mean a number of our restaurants are underperforming. While we continue to be profitable and cash-generative, our position is not sustainable, so we must take decisive action now to ensure we’re able to thrive in the future.”
Estimates of job losses are in the hundreds, though Prezzo has said it will try to redeploy staff where possible.
“We recognise this process will impact many of our team members and their families. We are committed to keeping them informed, and will be doing all we can to support them during this difficult time.” Hendry-Pickup added.
According to the terms of the CVA, leases on the 94 restaurants on the chopping board will be terminated in the next eight weeks.
Many of the sites closing are Prezzo's subsidiary brands: Chimichanga, MEXIco and Cleaver.
Anyone can download the full CVA proposal from a page on Prezzo's website.
The full list of sites marked for closure
Barnet (High Street)
Belfast (Victoria Square)
Belfast (Boucher Square)
Braintree (Freeport Village)
Bromley (Chimichanga, East Street)
Chelmsford (Baddow Road)
Deansgate - Manchester
Edinburgh (Pier Place)
Leicester (Silver Street)
Milton Keynes (Chimichanga)
Norwich (Thorpe Road)
Nottingham (Low Pavement)
Port Solent (Chimichanga)
Sheffield (Valley Centertainment)
Sheffield (Ecclesall Road)
South Woodford, London (Chimichanga)
St Annes on Sea
Stevenage (High Street)
Stratford Upon Avon
Wandsworth, London (Chimichanga)
Watford, London (Chimichanga)