Pizza Express chews over pasta deliveries

Hannah Uttley

RESTAURANT chain Pizza Express is planning to launch a pasta delivery service as it scrambles to bring in sales during the virus crisis.

The company, which is owned by Chinese private equity group Hony Capital, is considering introducing the delivery-only service as a separate brand to its pizza business, the Financial Times reports. Pizza Express is said to be eyeing a UK launch of the brand within the next couple of weeks. It plans to operate the new service alongside an existing delivery agreement with Deliveroo.

The casual dining chain is looking to overhaul its business amid mounting debts that have left Pizza Express owing bondholders and its owner £1.1bn.

Pizza Express has hired the investment bank Houlihan Lokey and law firm Kirkland & Ellis to explore its options, which are thought to include a potential company voluntary arrangement that could lead to rent cuts and the closure of some of its 627 restaurants. The chain is scrambling to convince bondholders – which are due to be repaid £1.1bn over the next two years – to allow it to delay filing its accounts. Yesterday, it extended a deadline for lenders to give their consent for the second time until June 12.

The hospitality industry has been one of the worst hit by the pandemic, with restaurants and pubs expected to be among the last to reopen as lockdown restrictions are eased.

Chains including Carluccio’s and Chiquito have already fallen into administration since the crisis hit.