Running out of dough

Restaurant chain starts debt talks

PIZZA Express is facing crunch talks with creditors amid hefty debts and fears it could struggle to survive.

Bosses have called in advisers from corporate finance firm Houlihan Lokey to discuss its £655million deficit.

An industry source said the talks are “not unusual”.

Pizza Express reported an 11% fall in pre-tax profits in the second quarter of this year due in part to rising running costs.

But sources close to the firm said it was not “close to collapse”.

The company is “still making money” but a “big slice of profits” is going to pay creditors, business expert Simon Jack said.

Pizza Express has 628 outlets in England and Ireland.

The family-favourite group of restaurants was launched in London in 1965 by Peter Boizot.

Fans were saddened by news of its financial woes, with Ian Dunt tweeting: “Would be genuinely sad if Pizza Express folded.

“Those were some of my first proper meals out.

A spokesman for Pizza Express declined to comment on the debt negotiations last night.