Prezzo to shut 94 restaurants as 500 jobs put at risk

Prezzo chain to shut down 94 restaurants. Credit: PA
  • Video report by ITV News Consumer Editor Chris Choi

Hundreds of jobs are set to be axed as the Italian-themed restaurant Prezzo agrees to new restructuring plans that will shut down around a third of its UK stores.

Around 500 jobs are understood to be in the firing line, although many staff will be redeployed at other restaurants.

Prezzo creditors are looking for restaurant landlords to approve rent reductions in order to stop the chain from going into administration.

The company, owned by private equity firm TPG Capital, have undertaken a deal known as Company Voluntary Arrangement (CVA) on Friday.

Other struggling high street restaurants, including burger chain Byron and Jamie's Italian, have also undertaken CVAs.

The news comes at a bleak time for the casual dining sector.

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.

  • Which other high street restaurants are taking a hit?

The burger chain announced its closure of 20 sites in January. Credit: PA
Strada announced closure of a third of its restaurants. Credit: PA

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.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.

  • Has your local Prezzo been affected?

Abergavenny

Alton

Amersham

Arundel

Barnet

Barnstaple

Bedford (operates under MEXIco brand)

Belfast, Victoria Square

Belfast, Boucher Road

Beverley

Blackpool

Blandford, Dorset

Bournemouth (operates under Chimichanga brand)

Braintree, Charter Way

Braintree (operates under Chimichanga brand)

Brentwood, High Street

Brentwood High Street (operates under Chimichanga brand)

Bromley (operates under Chimichanga brand)

Canterbury (operates under Chimichanga brand)

Cardiff (operates under Chimichanga brand)

Carlisle

Carmarthen

Catterick

Chatham (operates under Chimichanga brand)

Chelmsford

Chester (operates under Chimichanga brand)

Cobham (operates under Cleaver brand)

Cramlington, Northumberland

Crawley (operates under Chimichanga brand)

Dalton park

Darlington

Manchester, Deansgate

Derby (operates under MEXIco brand)

Ealing (operates under Chimichanga brand)

Eastleigh (operates under Chimichanga brand)

Edinburgh

Falmouth

Fareham, Hampshire (operates under Chimichanga brand)

Farnham, Surrey

Formby

Glasgow Fort

Gloucester

Guildford

Halstead

Haywards Heath

Hereford, Garrick Lane

Hereford, Garrick Lane (operates under Chimichanga brand)

Hornchurch (operates under Chimichanga brand)

Ipswich (operates under Chimichanga brand)

Kettering (operates under Chimichanga brand)

Kingston

Leicester

Lewes

Lincoln (operates under Chimichanga brand)

Maidstone (operates under MEXIco brand)

Midhurst

Milton Keynes (operates under Chimichanga brand)

New Brighton (operates under Chimichanga brand)

Newbury

Newcastle

Newquay

Northwood

Norwich

Nottingham

Penarth

Peterborough (operates under Chimichanga brand)

Port Solent, Portsmouth (operates under Chimichanga brand)

Poulton

Ripon

Sheffield, Broughton Lane

Sheffield, Ecclesall Road

Silverburn (operates under Chimichanga brand)

Solihull (operates under Chimichanga brand)

South Woodford (operates under Chimichanga brand)

Southampton, 25 Oxford Street

Southampton (operates under Chimichanga brand)

St Annes-on-Sea

St Austell

Stamford

Stevenage

Stratford Upon Avon

Sudbury

Taunton

Telford Southwater (operates under Chimichanga brand)

Tewkesbury

Wandsworth

Wandsworth (operates under Chimichanga brand)

Warrington

Watford (operates under Chimichanga brand)

West Bromwich

Wokingham

Woodley

Yate

Yeovil