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Prezzo To Close 100 Of Its 300 Restaurants As It Seeks CVA

Italian-themed restaurant chain Prezzo is set to close up to 100 of its 300 restaurants, including some of its Tex-Mex chain Chimichanga, putting up to 1,000 jobs at risk.

The chain, owned by the US private equity group TPG Capital, hopes to secure a turnaround plan where creditors will be asked to approve proposals under which its restaurants’ landlords accept rent reductions, echoing recent steps taken by the burger chain Byron and Jamie’s Italian to keep themselves afloat.

Prezzo, which is working with AlixPartners on the restructuring, currently employs 4,500 people. 

Prezzo’s trouble are just one of several other high profile chains to hit problems including Burger restaurants Byron and Italian chain Strada, along with Jamies Italian and his steak restaurants Barbaccoa all of who have already triggered closures so far this year.  

The news comes at a austere time for the high street and the casual dining sector in particular, with the sector is facing a series of major challenges: the weakness of the pound since the Brexit vote means restaurants are paying higher prices for food combined with falling footfall, rising business rates, National Living Wage costs and the Apprenticeship Levy have also taken their toll.

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