The high street restaurant shake-up looks set to claim another victim this week, with Prezzo reportedly preparing a Company Voluntary Arrangement (CVA) that will lead to the closure of up to 100 stores.
Around 100 Prezzo-owned outlets face closure including all 33 branches of its Chimichanga Tex-Mex branches, Sky News reported.
The CVA will be overseen by advisory firm AlixPartner, and is likely to involve negotiations with landlords to try to reduce rents at numerous restaurants that remain.More news: Switching to 'megaphone' diplomacy, Iran threatens to leave nuclear deal
Several hundred of the 4,500 jobs at Prezzo are likely to be impacted as a result of the restructure, though the company is understood to be aiming to redeploy staff at affected sites to other restaurants in its portfolio.
Soaring business rates, National Living Wage costs and the Apprenticeship Levy have also taken their toll.More news: Kanye West and Kim Kardashian to Appear on 'Celebrity Family Feud'
Prezzo's creditors will be asked to approve proposals under which its restaurants' landlords accept rent reductions.
Last summer, Handmade Burger Co collapsed into administration, while companies including The Restaurant Group - which owns Garfunkel's and Frankie & Benny's - have been forced to change their leadership teams in an effort to revive their fortunes.
Spokespeople for Prezzo and TPG declined to comment.More news: Palakkad Police Arrests 16 Persons For Lynching Tribal Man
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