Prezzo's restructuring plan approved by the High Court

Prezzo's restructuring plan has been approved by the High Court, despite opposition from HM Revenue and Customs (HMRC).

The casual dining chain said the move would bring an end to the “strategic reshaping of the business” and allow it to focus on a “sustainable future”.

In April, Prezzo chief executive Dean Challenger admitted soaring inflation had made it “impossible” for all its restaurants to stay profitable.

The group closed 46 sites in April and is left with 97 restaurants, which it said had delivered strong like-for-like sales in 2023.

This week Bloomberg reported HMRC had objected to the restructure and claimed it was being used by Prezzo to avoid paying more than £11m worth of tax, while around £32m owed to landlords would also be compromised by the restructure.

However, the Honourable Mr Justice Richard Smith said in his ruling: “I am satisfied in all the circumstances of this case that the plan is a fair one.”

Prezzo said it would continue to invest in its menu and chef training to create an offer that “stands out in the casual dining market”.

The chain recently announced a strategic partnership with illy Coffee and Italian brewing company Poretti, which is now available in over 90% of its restaurants.

Challenger said: “This decision brings to an end our strategic review enabling us to focus on building a quality led, profitable and sustainable business.

“Our restaurants are in the right locations, offering quality food and drink to our customers, served by teams committed to delivering an exceptional customer experience.”

Jo Harrison, former director of finance at retailer Hotel Chocolat, recently joined Prezzo as its new chief financial officer amid the restructure.

The plans are backed by Prezzo’s private equity owner, Cain International.