PREZZO CHAIN IS CLOSING RESTAURANTS IN THE UK

Italian chain Prezzo will permanently close 22 restaurants after being bought out by private equity firm Cain International. As a result of the deal, 22 of 178 restaurants of the company, located in the UK, will be closed.

The deal with the Cain International came after Prezzo was forced to go into the administration after failing to negotiate lease payments with landlords.

The investment firm said that 216 of the company’s 2,900 jobs would be lost.

“We are deeply sorry for everyone affected by the final closure of 22 non-viable restaurants. This decision will allow us to save thousands of jobs and create more in the future,” stated the company in a statement.

Earlier this week Sky News reported that the owner was considering options for securing its future, including the possibility of bankruptcy for the restaurant group.

In December, Prezzo was sold to Cain International as a going concern. The company was among the restaurants affected by the Covid-19 pandemic.

Cain International said Prezzo restaurants had been able to operate only for 25 of the last 52 weeks, but fixed costs and rent payments only grew.

The value of the sale of chain was not disclosed, but it took place six years after the previous owner, TPG, bought Prezzo for more than £ 300 million (more than RUB 30 billion).