Prezzo to pursue restructuring plan through the courts
Prezzo is set to pursue a restructuring plan through the courts as it looks to close almost a third of its restaurant estate.
The casual dining chain said last month it was planning to shut 46 loss-making sites after struggling with the rising cost of everything from energy to dough balls.
The move would see the loss of more than 800 jobs and leave the business with 97 remaining restaurants.
It is understood Prezzo is not undertaking a Company Voluntary Agreement (CVA), a method commonly used by casual dining chains including Prezzo itself in 2018, but instead intends to pursue a restructuring plan through the courts.
Under the proposals Cain and Prezzo would take responsibility for any staff redundancy payments, rather than the government, The Caterer understands.
Prezzo wrote to landlords and creditors on Tuesday (2 May) and the plan will be put to a vote on 22 May.
Sky News reports the proposal is likely to be approved because Cain International, the investment firm which owns Prezzo, is its largest creditor.
A similar restructuring method was used by gym chain Virgin Active in 2021 but proved controversial with landlords who were forced to write off rent arrears and face future reductions in rent.
Prezzo declined to comment.
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