Yahoo Finance Pizza Express puts itself up for sale as it closes 67 restaurants with 1,100 jobs at risk
Pizza Express today confirmed it will close 67 restaurants, putting 1100 jobs at risk, as the company put itself up for sale.
The sale comes as Pizza Express brought in restructuring experts to help deal with £735 million of debts. It will also sell its business in China.
Investment bank Lazards will run the sales process.
The restaurant business has been hit hard by coronavirus and will undertake a CVA to cut its rent obligations across much of its UK estate.
Pizza Express said: "This decision is a very difficult one; however, against the current unprecedented backdrop, PizzaExpress believes reducing the size of its estate will help it to protect 9,000 jobs."
Pizza Express currently operates 449 restaurants in the UK.
The company closed all its UK restaurants on March 23 after the Government-mandated lockdown.
Andy Pellington, group chief finance officer, said: “While we have had to make some very difficult decisions, none of which has been taken lightly, we are confident in the actions being taken to reduce the level of debt, create a more focused business and improve the operational performance, all of which puts us in a much stronger position.
“We can now plan to invest in both our UK&I and international businesses as well as support our teams as they return to work.”
Zoe Bowley, UK and Ireland managing director, said: “Our business has a long history of success, but the UK-wide lockdown has hit the hospitality industry particularly hard.
“While the financial restructuring is a positive step forward, at the same time we have had to make some really tough decisions.
“As a result, it is with a heavy heart that we expect to permanently close a proportion of our restaurants, losing valued team members in the process.”
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