Threat to Pizza Express restaurants

PIZZA EXPRESS could permanently close scores of its 470 UK restaurants.

The Mail on Sunday understands the high street chain could go through a restructuring process known as a CVA, which would allow it to exit some or all of its lossmaking sites and reach an agreement with creditors.

Before the coronavirus pandemic hit in March, forcing restaurants to close, fewer than ten of the chain’s UK venues were loss-making. But it is understood the crisis has forced the firm to evaluate options for ensuring its future viability and a CVA is one of several possibilities.

Pizza Express – owned by Chinese private equity firm Hony Capital – is grappling with a £1.1billion debt pile, of which £665 million is owed to bondholders, and is seeking a consent solicitation to delay publication of its 2019 results on advice from the Financial Conduct Authority.

Earlier this month credit ratings agency S&P said a debt restructuring was ‘highly likely’.

Pizza Express – which employs 14,000 people globally across 627 restaurants – declined to comment.