Spotlight on Pizza Express as debt pile sparks fears for chain’s future
Speculation over the future of Pizza Express mounted over the weekend amid reports of potential store closures and debt restructuring talks.
The pizza chain, which is looking to slash its £1.1bn debt pile, has denied suggestions that it is mulling mass closures after a tough spell of trading.
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According to the Sunday Telegraph, as many as two in five of the beleaguered pizza chain’s restaurants are loss-making and at risk of closure, with over 150 restaurants at threat.
One source told the newspaper that an option under consideration was a controversial cost-cutting process known as a company voluntary arrangement (CVA).
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However, a PizzaExpress spokesperson told City A.M.: “95 per cent of our UK&I restaurants are profitable and there are no plans for closures outside the normal course of business.”
A number of high profile restaurants including Jamie’s Italian and Gaucho have slashed their store portfolio in recent years amid troubles in the casual dining sector from competition and high costs.