Italian restaurant chain Prezzo is the latest casual dining group to be hit by tough trading conditions within the sector.
Owned by American private equity business TPG, the company has appointed consultants at Alix Partners to oversee a financial restructuring, according to The Sunday Times. Closures of a number of sites within the 262-strong group could be an option.
The news follows on from recent announcements that Jamie’s Italian and burger chain Byron have entered into company voluntary arrangements (CVA), where the businesses reach an agreement to pay creditors is reached in order to enable them to continue trading.
Three months ago accountancy firm Moore Stephens said that one-fifh of UK restaurants risked insolvency as they battled tough times stemming from rising labour costs and an escalation of food prices, thanks to a weakened pound.
Prezzo was acquired by TPG in 2014 for £304m from the Kaye family, who founded the business in 2000.
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