Restaurant chain Prezzo are set to close 100 stores, putting hundreds of jobs at risk as the company looks set to become the latest victim of brutal trading conditions.
Prezzo’s owner, private equity firm TPG Capital, is expected to put the chain into a Company Voluntary Arrangement in the next few days, according to the Press Association. A CVA is a deal with the creditors of a struggling company that allows it to reduce its debt but keep running.
Under the deal, the company will close unprofitable branches and secure rent reductions on the remaining estate. Should the company put forward a CVA, its creditors would need to approve the proposal before it could go ahead.
Prezzo employs around 4,500 people and has 300 restaurants. Under the deal it is thought that a third of those will close, along with outlets of Chimichanga, the Tex-Mex brand owned by Prezzo.
