Prezzo, the excessive avenue restaurant chain, is bracing for a court docket showdown with landlords over the closure of a 3rd of its websites.
It’s understood that Prezzo will write to the homeowners of its 143-strong property on Tuesday to inform them of the authorized course of by way of which it intends to close unprofitable shops.
Metropolis sources stated the chain, which is owned by Cain Worldwide, supposed to make use of a proper restructuring plan to power by way of the overhaul.
Prezzo introduced final week that it was axing 46 retailers with the lack of greater than 800 jobs.
It stated rising power payments and double-digit price inflation on objects together with dough balls and spaghetti had hit the monetary efficiency of a lot of its websites.
Landlords, who embrace a few of Britain’s largest business property-owners, will be capable of vote at a listening to on 22 Might, based on an insider.
Nevertheless, the plan is for certain to be authorized due to Cain’s standing as Prezzo’s largest creditor, the insider added.
The chain’s remaining websites is not going to be the topic of any lease cuts.
Prezzo’s use of a restructuring plan is prone to be controversial amongst landlords after the mechanism started getting used through the pandemic.
It made no reference to the plan in final week’s announcement concerning the closures.
Dean Challenger, chief govt of Prezzo, stated final week: “The associated fee-of-living disaster, the altering face of the excessive avenue and hovering inflation has made it not possible to maintain all our eating places working profitably.
“That’s the reason now we have made the tough determination to shut 46 websites the place the post-COVID restoration has proved tougher than we had hoped.
“We consider the powerful choices we’re making as we speak will guarantee Prezzo can proceed serving communities with high-quality, accessible Italian-inspired meals for a lot of extra years to return.”
Prezzo declined to touch upon the restructuring plan, on which FRP Advisory is appearing.