Job losses may be on menu as clouds gather around restaurant chain.

Around a third of Prezzo restaurants could be set to close as its parent company orders a restructuring, it has been reported.

Wednesday, 28th February 2018, 11:55 am
Updated Wednesday, 28th February 2018, 2:40 pm
Blackpool's Prezzo restaurant

The Italian pizza and pasta chain is said to be preparing to is set to unveil plans to close 100 restaurants in the move, which would also see the closure of all of its Chimichanga Mexican style food outlets.

It has not yet been announced which restaurants are to shut their doors but the firm has premises at the Capitol Centre Preston, in Victoria Street, Blackpool, St Annes Road West, St Annes and the Teanlowe Centre Poulton.

The restaurants' private equity firm owner, TPG Capital of the USA, is said to be poised to launch a company voluntary arrangement (CVA) "in the next few days" as it looks to restructure finances.

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The Prezzo chain founded by the Kaye family in 2000 before being sold on to current owner TPG Capital in 2015 for £304m .

It has reportedly has appointed consultants at Alix Partners to oversee a financial restructuring.

This year many restaurant chains have reported difficulties with rising costs of ingredients thanks to the drop in the pound following the Brexit vote, rising labour costs plus high rents and business rates allied to over-capacity in the market as consumers' budgets tighten.

Jamie's Italian and Byron Hamburger have been two big names reporting trouble and entering into a CVA.

The news completes a bad day on the high street at big names Toys R Us and Maplin also announced they had gone into administration threatening thousands of jobs.