Prezzo to close 100 outlets in restructure

Hundreds of jobs are expected to be lost at Prezzo as the restaurant chain edges closer to a restructuring that will see up to 100 sites close.

The company, owned by private equity firm TPG Capital, is set to launch a Company Voluntary Arrangement (CVA), which will allow the Italian-themed chain to exit unprofitable branches and secure rent reductions on the remaining estate. A total of 100 of Prezzo’s 300 outlets have been earmarked for closure, as well as its Texmex chain Chimichanga. Prezzo, which is working with Alixpartners on the restructuring, employs 4,500 people.

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

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

Elsewhere, furniture retailer Warren Evans fell into administration this month, New Look and Mothercare both made dire recent announcements to the stock market and House of Fraser has entered negotiations to cut its store rents.

As well as staff costs and lower footfall, the chains have been stung by the collapse in the pound after the Brexit referendum.

Soaring business rates, National Living Wage costs and the Apprenticeship Levy have also taken their toll.