Deadline day for Prezzo restructure as creditors get set to vote
PUBLISHED: 09:36 23 March 2018 | UPDATED: 09:36 23 March 2018
Italian restaurant chain Prezzo faces a crunch vote today as its creditors decide whether to accept restructuring proposals which will see it slash its debts and cut stores.
Among the sites facing the axe is Norwich Thorpe Road, however should 75% of creditors fail to agree to the terms of the company voluntary arrangement (CVA) the group could collapse into administration.
READ: Why is the restaurant industry struggling?
A CVA is an agreement whereby businesses owed money can forgo some of it to allow the company to continue trading in the long-term with landlords at several sites expected to take a reduced rent.
Prezzo has followed a host of rival eatery chains in entering into a restructuring process amid challenging times for the industry, with rising food costs, business rates and rents.
Burger chain Byron and Jamie’s Italian have both cut stores since the start of the year while retailers Maplin and Toys R Us have entered administration.
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