Restaurant chain Prezzo has confirmed the list of branches that will permanently close, as part of its rescue deal.
The chain will close 22 of its restaurants after being rescued out of administration, resulting in the loss of 216 jobs.
‘A difficult decision’
Cain International, which only bought the chain in December last year, has bought it back from administrators in a pre-pack deal to secure its future.
The owner said the action will protect the vast majority of Prezzo’s 2,900 team member’s jobs.
Currently, all 178 of Prezzo’s restaurants are closed to customers due to the ongoing Covid-19 lockdown restrictions.
Out of the past 52 weeks, the chain has only been able to operate for 25 weeks in total, but has seen fixed costs and rent accumulate, Cain International said.
It is understood that the company filed for insolvency after failing to reach an agreement with landlords over rent payments.
Jonathan Goldstein, chief executive of Cain, said: “We firmly believe that strong hospitality businesses, such as Prezzo, have a bright future and will play an essential role in reviving the UK economy.
“However, to do so, we must get through this current crisis of mounting liabilities and no revenues.
“The lack of visibility on when and how the sector will reopen has heightened economic uncertainty to the point where decisive action had to be taken to secure the future of the business and the majority of jobs for Prezzo’s people.
“We are deeply sorry for all those affected by the permanent closure of the 22 non-viable restaurants.
“It was a difficult, but essential, decision to take but doing so will allow us to save thousands of jobs and create more in the future.”
Which restaurants will close?
Listed below are all of the Prezzo restaurants which have been confirmed to be closing permanently:
- Aberdeen Marishal Square
- Weston Super Mare
- Milton Keynes Kingston Centre
- London Marble Arch
- Isle of Wight
- London Wembley
- London Mayfair
- Birmingham Harbourne
- Saffron Waldon
- East Dareham
- London Chislehurst
- London South Woodford
- Bridge North