Hong Kong riots hit Pizza Express

PIZZA Express is to reveal losses on its overseas arm after being forced to close 21 restaurants in Hong Kong during the violent protests.

A trading update last week said the hit on sales caused by the ‘disruption in Hong Kong’ means its 140 international restaurants will make a loss this year after falling around

£300,000 into the red in the three months to September.

In its 500 branches in the UK and Ireland, sales are flat and could end up down ‘slightly’ on last year.

Pizza Express is grappling with a £1.1billion debt pile, which is requiring interest repayments of £48million a year, or £132,000 a day.

To bolster the balance sheet, the chain’s owner, Chinese private equity firm Hony, will buy back £80 million worth of debt owed to bondholders in 2022 at a 60 per cent discount.

A source close to Pizza Express called Hony’s cash injection a ‘positive step’ after advisers were appointed in October to explore a restructuring.

There are no plans to close restaurants in the UK, where around 95 per cent of sites are profitable.

Pizza Express and Hony declined to comment.