Three city restaurants axed with fears for jobs
DOZENS of jobs are under threat as three Glasgow restaurants announce plans to close their doors within weeks.
It’s understood Silverburn Shopping Centre will lose both its TexMex Chimichanga and Prezzo restaurants, while Glasgow Fort’s Prezzo site is also set to close its doors.
The move is part of an eleventh-hour bid to save the company with a restructuring agreement known as a company voluntary arrangement, which is a step short of administration.
It’s not known how many jobs are under threat across Glasgow, however, around 1,000 of the company’s 4,500 employees throughout the UK are expected to be axed.
The restaurant chain said it will attempt to redeploy staff where possible.
Jon Hendry-Pickup, CEO of Prezzo, told City AM: “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.
“We recognise this process will impact many of our team members and their families. We are committed to keeping them in- formed, and will be doing all we can to support them during this difficult time.”
Owner TPG Capital – who bought the chain for £300 million in 2014 – announced the closures of 94 Prezzos and all 33 Chimichangas last week.
A statement on the restaurant’s website read: “This will allow the company to focus its resources on the core, more profitable restaurants whilst con- tinuing to meet its obligations to suppliers and creditors.
“Prezzo will be better placed to implement the changes required to refresh the Prezzo brand and to counter the economic challenges currently affecting the casual dining sector.
“This proposed restructuring, under the terms of a company voluntary arrangement (“CVA”), will allow Prezzo to continue operating while it implements plans to improve its food and service and to invest in new restaurant layouts and designs.”
A meeting between restaurant bosses and creditors will take place on March 23 to approve plans to “substantially reduce Prezzo’s rental obligations and move towards a more robust business model”.
If approved, its understood the closures could occur within eight weeks.