Prezzo confirms 94 restaurant sites set to close

By Paul Norman - Monday, March 05, 2018 10:34

Italian restaurant chain Prezzo has confirmed the 94 restaurants it is proposing to close as part of its company voluntary arrangement (CVA).

The CVA was announed on 2 March and proposes to close branches which Prezzo deems would not be profitable after a rent reduction, within eight weeks. Landlords across the remainder of the estate will be asked reduce rents.

Prezzo said the CVA enables it to "rationalise its estate and to reduce the cost of its leased restaurants. This will allow the company to focus its resources on the core, more profitable restaurants whilst continuing to meet its obligations to suppliers and creditors."

Should creditors agree to the CVA Prezzo will continue operating while it implements plans to improve its food and service and to invest in new restaurant layouts and designs.

Under the CVA process, Prezzo has submitted a restructuring plan to its creditors and will seek their approval of the CVA at a meeting on 23 March 2018. If approved by the creditors, the CVA proposal will "substantially reduce Prezzo’s rental obligations and will move the business towards a more robust business model. Where restaurants are closed, we will do everything possible to redeploy staff to other sites".

Jon Hendry-Pickup, CEO of Prezzo, said: “Prezzo’s core business today is fundamentally strong and has fantastic potential. However, the well-documented pressures on our industry mean a number of our restaurants are underperforming. While we continue to be profitable and cash-generative, our position is not sustainable, so we must take decisive action now to ensure we’re able to thrive in the future.”

Many of the sites closing are from Prezzo brands Chimichanga, MEXIco and Cleaver.

The full list of sites marked for closure are:

Abergavenny

Alton

Amersham

Arundel

Barnet (High Street)

Barnstaple

Bedford, (MEXIco)

Belfast (Victoria Square)

Belfast (Boucher Square)

Beverley

Blackpool

Blandford

Bournemouth (Chimichanga)

Braintree (Freeport Village)

Brentwood

Bromley (Chimichanga, East Street)

Canterbury

Cardiff (Chimichanga)

Carlisle

Carmarthen

Catterick

Chatham (Chimichanga)

Chelmsford (Baddow Road)

Chester (Chimichanga)

Cobham (Cleaver)

Cramlington

Crawley (Chimichanga)

Dalton

Darlington

Deansgate - Manchester

Derby (MEXIco)

Ealing (Chimichanga)

Eastleigh (Chimichanga)

Edinburgh (Pier Place)

Falmouth

Fareham (Chimichanga)

Glasgow Fort

Gloucester

Guildford

Halstead

Haywards Heath

Hereford

Hereford (Chimichanga)

Hornchurch (Chimichanga)

Ipswich (Chimichanga)

Kettering

Kingston

Leicester (Silver Street)

Lewes

Lincoln

Maidstone (MEXIco)

Midhurst

Milton Keynes (Chimichanga)

New Brighton

Newbury

Newcastle

Newquay

Northwood

Norwich (Thorpe Road)

Nottingham (Low Pavement)

Penarth

Peterborough (Chimichanga)

Port Solent (Chimichanga)

Trustees Ltd

Poulton

Ripon

Sheffield (Valley Centertainment)

Sheffield (Ecclesall Road)

Silverburn, Glasgow

Solihull (Chimichanga)

South Woodford, London (Chimichanga)

Southampton

Southampton (Chimichanga)

St Annes on Sea

St Austell

Stamford

Stevenage (High Street)

Stratford Upon Avon

Sudbury

Taunton

Telford (Chimichanga) ​

Tewkesbury

Wandsworth, London

Wandsworth, London (Chimichanga)

Warrington

Watford, London (Chimichanga)

West Bromwich

Wokingham

Woodley

Yate

Yeovil

pnorman@costar.co.uk

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