Pizza Express plans to close 67 restaurants, putting 1,100 jobs at risk
Pizza Express is planning to close 67 UK restaurants due to the coronavirus pandemic, putting 1,100 jobs at risk, as the casual dining chain put itself up for sale.
The company announced this morning that it will launch a company voluntary arrangement (CVA) in the “near future”.
The CVA proposals would see the group close 15 per cent of its 449 restaurants in the UK.
Pizza Express has appointed investment bank Lazard & Co to launch a sales process. It will also divest its business in China.
“The Covid-19 crisis has had a profound impact on the entire hospitality sector, with the UK-wide lockdown reducing revenues significantly,” Pizza Express said in a statement this morning.
“The business and its advisers have therefore undertaken an extensive review of its operations to plan appropriately for the future.”
The review evaluated the forecasted future trading performance of each site, based on a delayed and inconsistent recovery to previous trading levels
Group finance chief Andy Pellington said: “Today’s agreement with our share and debt holders provides us with a significantly more robust
balance sheet as well as material additional funding. It is a complete solution to our balance sheet issues and creates strong foundations to build on for future success.
“While we have had to make some very difficult decisions, none of which has been taken lightly, we are confident in the actions being taken to reduce the level of debt, create a more focused business and improve the operational performance, all of which puts us in a much stronger position.
“We can now plan to invest in both our UK&I and International businesses as well as support our teams as they return to work.”
More to follow