Hundreds of jobs are to be axed after the Italian restaurant chain Prezzo agreed a restructuring plan that will see 94 restaurants closed, while rival Carluccio’s seeks a private equity buyer as a ‘perfect storm’ batters the sector.
The closures will mean a loss of around 500 jobs within the British hospitality sector.
The company, owned by private equity firm TPG Capital, secured the backing of creditors for Company Voluntary Arrangement (CVA) on Friday, which will allow the Italian-themed chain to exit unprofitable branches and secure rent reductions.
Hundreds of jobs are to be axed after the Italian restaurant chain Prezzo agreed a restructuring plan with creditors that will see it shut 94 restaurants
A total of 94 of Prezzo’s 300 outlets will close, with around 500 jobs understood to be in the firing line, although many staff will be redeployed at other restaurants.
Prezzo, which worked with AlixPartners on the restructuring, employs 4,500 people.
The news comes at a bleak time for the high street and the casual dining sector in particular.
This year has also seen burger chain Byron and Jamie’s Italian undertake CVAs as they come under increasing pressure from rising costs and falling consumer confidence.
As well as staff costs and lower footfall, the chains have been stung by the collapse in the pound, which has ramped up the cost of buying ingredients.
Soaring business rates, National Living Wage costs and the Apprenticeship Levy have also taken their toll.
A total of 94 of Prezzo’s 300 outlets will close, with around 500 jobs understood to be in the firing line, although many staff will be redeployed at other restaurants
News of Prezzo’s store closures come in a dismal first quarter for the UK high street.
Earlier this week, New Look agreed a restructuring plan with creditors that will see it shut 60 stores, resulting in the loss of up to 980 jobs.
It comes as other restaurants have run into trouble so far this year, including Jamie Oliver’s Jamie’s Italian and his upmarket steak chain Barbecoa.
Burger joint Byron and Italian chain Strada are also among the other businesses that have already triggered closures so far this year
The famous chef announced the closure of 12 outlets last month, after closing down six last year.
Burger joint Byron and Italian chain Strada are also among the other businesses that have already triggered closures so far this year.