Italian bistro chain to close two branches

ITALIAN bistro chain Prezzo is set to close its Newcastle and Cramlington branches as the company tries to save the flagging business.

Prezzo is set to close 94 of its restaurants as it tries to rescue its business, including the branch in Newcastle’s Old Eldon Square.

All 33 of its Chimichanga restaurants will also be closed.

The move is part of a restructuring known as a company voluntary arrangement.

The chain’s debts will be put on hold while the company looks for a buyer. It is a step before going into administration, reports the BBC.

It’s thought the move will result in around 1,000 job losses; however, Prezzo has said it will try to find staff new roles in the business.

The news comes at a bleak time for the high street and the casualdining sector in particular.

This year has already seen burger chain Byron and Jamie’s Italian undertake CVAs as they come under increasing pressure from rising costs and falling consumer confidence.

Jamie Oliver was forced to pump £3m of his own money into his Jamie’s Italian chain in December. He is now planning to close 12 out of 37 UK branches.

The Newcastle Prezzo opened in 2015 after another Italian chain, Strada, vacated the premises.

The restaurant spent £500,000 on a refurbishment.