19 August 2020 08:43
Sign up to our newsletter for daily updates and breaking news Sign up here! Thank you for subscribing See our privacy notice Invalid Email Pizza Express has announced plans to permanently close 73 of its restaurants, impacting 1,100 members of staff, as part of a major restructuring plan to shore up its finances. Want the best Nottingham news by 9am every day? Subscribe Thank you for subscribing We have more newsletters Show me See our privacy notice Invalid Email Pizza Express plans to close its Goose Gate restaurant after announcing it will permanently shut 73 of its restaurants. The move will impact 1,100 members of staff and is part of a major restructuring plan to shore up its finances.
The chain, which currently has around 454 restaurants in the UK, confirmed it has finalised a proposal to reduce costs via a company voluntary arrangement (CVA) on Tuesday (August 18). Although the majority of restaurants were profitable before lockdown was imposed, bosses claim earnings have been declining across the estate for the last three years. Pizza Express UK and Ireland managing director Zoe Bowley said the impact of the coronavirus pandemic led to some "incredibly tough decisions to safeguard Pizza Express for the long term". She added: "Today we have confirmed that 73 of our pizzerias are proposed to close permanently. "In most cases, there is another Pizza Express nearby, either already open or reopening soon, to welcome our customers.
Pizza Express has announced plans to close 73 of its restaurants across the UK. The proposed closures, which aim to reduce the chain's costs via a company voluntary arrangement (CVA), could result in 1,100 job losses. The chain added that the reduction in revenue caused by the enforced closure of all restaurants, the cost of reopening and the UK's uncertain economic future meant its rental costs were no longer sustainable. Pizza Express, which is majority owned by Chinese firm Hony Capital, also confirmed it had hired advisers from Lazard to lead a sale process for the business. It said it would hold a virtual meeting for its creditors on September 4 to seek approval for the measures set out in the CVA. The following restaurants have been earmarked for closure: Birmingham, Corporation St Birmingham, Mailbox Bristol, Berkeley Sq Bristol, Regent St Leeds, Crown St Leeds, Horsforth New Brighton Newport, Isle of Wight Newport, South Wales Nottingham, Goosegate Sheffield, Devonshire St Sheffield The Moor (Reuters) - PizzaExpress has decided to close 73 of its 449 UK restaurants due to coronavirus lockdowns and higher costs, a move that one of the country's best known restaurant chains said would impact 1,100 jobs. The company said rental costs have become unsustainable and launched a company voluntary arrangement (CVA) to improve its finances by cutting rental agreements and temporarily moving from quarterly to monthly rents. "Hard as this process is, it will protect the jobs of over 9,000 of our colleagues," Zoe Bowley, the company's UK and Ireland managing director, said in a statement. The company joins a long list of UK's High Street restaurants chains that have closed outlets and cut thousands of jobs, seeking to restructure their businesses in the face of the pandemic. PizzaExpress said it would seek approval for the CVA proposals from its creditors on Sept. The group had said earlier this month that 166 of its restaurants are now open and further reopenings are under way. Earlier this month, Chinese buyout firm Hony Capital decided to cease control of PizzaExpress, which it bought for 900 million pounds ($1.19 billion) in 2014, to creditors in a debt-for-equity swap.