Prezzo to permanently close 22 restaurants with 216 job losses

Restaurant chain Prezzo is to permanently close 22 restaurants after being bought via pre-pack administration by investment firm Cain International.

The deal will see 216 of the group’s 2,900 team members lose their jobs. Prezzo’s remaining 156 sites are expected to reopen when coronavirus restrictions are lifted.

Yesterday Cain, which acquired Prezzo’s debt and equity on 2 December, confirmed it was in discussions with landlords over future rent arrangements and payment of arrears.

As of 10 February 2020 the casual dining chain’s restaurants have only been able to operate for 25 weeks, while fixed costs and rent have continued to accumulate.

Jonathan Goldstein, chief executive of Cain International, 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.”

Prezzo will continue to be led by its existing management team.

The chain was founded in 2000 and has sites in high streets, leisure parks and tourist destinations.

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