Prezzo restaurants in Shropshire saved from closure

The stores in Telford, Bridgnorth and Oswestry branches are not among the 94 restaurants to close nationwide.

It comes as it was announced hundreds of jobs are to be axed at Prezzo after the restaurant chain agreed a restructuring plan that will see nearly 100 sites close.

These include Chimichanga in Telford's Southwater complex and Prezzo's branch in West Bromwich.

The company, owned by private equity firm TPG Capital, secured the backing of creditors for Company Voluntary Arrangement (CVA) today, which will allow the Italian-themed chain to exit unprofitable branches and secure rent reductions.

A total of 94 of Prezzo's 300 outlets will close, with around 500 jobs understood to be in the firing line, although many staff will be redeployed at other restaurants.

Prezzo, which worked with AlixPartners on the restructuring, employs 4,500 people.

The CVA proposal was backed by 88 per cent of the creditors, including landlords.

Transformation

Prezzo boss Jon Hendry-Pickup said: "I would like to thank our creditors and landlords for supporting our transformation plan.

"While we continue to be profitable, the pressures on our industry have been well documented.

"Despite this being a tough decision, the support given today by our creditors shows that they believe we have the right approach to transforming Prezzo in the eyes of teams, customers and stakeholders.

"It has been a challenging time during the CVA process and I would like to thank our suppliers, colleagues and customers for their patience and support."

The 94 restaurants identified for closure are likely to shut in April and May, Prezzo said, and staff will be made aware of the exact dates as soon as they have been confirmed.

The news comes at a bleak time for the high street and the casual dining sector in particular.

This year has also seen burger chain Byron and Jamie's Italian undertake CVAs as they come under increasing pressure from rising costs and falling consumer confidence.

As well as staff costs and lower footfall, the chains have been stung by the collapse in the pound, which has ramped up the cost of buying ingredients.

Soaring business rates, National Living Wage costs and the Apprenticeship Levy have also taken their toll.