Hundreds of jobs are to be axed at Prezzo after the restaurant chain agreed a restructuring plan that will see nearly 100 sites close, including five in Yorkshire.
The company, owned by private equity firm TPG Capital, secured the backing of creditors for Company Voluntary Arrangement (CVA) today (Friday), which will allow the Italian-themed chain to exit unprofitable branches and secure rent reductions.
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.
The Yorkshire restaurants that are set to close are Beverley, Catterick, Ripon, Sheffield Valley Centertainment and Sheffield Ecclesall Road.
The county’s top performing sites will be staying open which are Leeds The Light, Leeds White Rose, York Clifford Street, York Vanguarde Retail Park, Harrogate and Hull.
Prezzo, which worked with AlixPartners on the restructuring, employs 4,500 people across its stable of restaurant brands, which also include Chimichanga, MEXIco and Cleaver.
Prezzo boss Jon Hendry-Pickup said: “I would like to thank our creditors and landlords for supporting our transformation plan.
“While we continue to be profitable, the pressures on our industry have been well documented.
“Despite this being a tough decision, the support given today by our creditors shows that they believe we have the right approach to transforming Prezzo in the eyes of teams, customers and stakeholders.
“It has been a challenging time during the CVA process and I would like to thank our suppliers, colleagues and customers for their patience and support.”
The 94 restaurants identified for closure are likely to shut in April and May, Prezzo said, and staff will be made aware of the exact dates as soon as they have been confirmed.
News of Prezzo’s store closures come in a dismal first quarter for the UK high street, with Carpetright also announcing the prospect of closing outlets on Wednesday and Moss Bros and Mothercare also in the doldrums.
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.