Future of Pizza Express in Grantham uncertain as large debts revealed

Share

The 54-year-old food chain is said to have debts that equate to £1.6 million per each of its restaurants.

Monetary consultants Langdon Capital tweeted earlier at present: 'Pizza Categorical reportedly about to have interaction in talks with collectors.

Financial specialists Bloomberg is reporting Pizza Express has appointed financial advisor Houlihan Lokey to "prepare for talks with is creditors".

Pizza Express, Ipswich Waterfront.

The restaurant chain has hired advisers at corporate finance firm Houlihan Lokey to prepare for debt talks with creditors amid hard trading conditions for casual dining chains in the UK.

He said: "In the first half of the year, we are pleased that we have remained resilient across all our markets despite sector-wide challenges". Founded in 1965, Pizza Express has 470 outlets in the United Kingdom, with a further 150 internationally and employs 14,000 people.

What do you think of Pizza Express' reported struggles? Bondholders have also reportedly hired advisers to assist them in the discussions.

Pizza Express' rival Prezzo shut down the majority of its restaurants last year and Jamie Oliver's Italian chain filed for insolvency in May this year.

The company secured the backing of creditors for Company Voluntary Arrangement (CVA) on Friday, which will allow the Italian-themed chain to exit unprofitable branches and secure rent reductions.

This comes after Pizza Express' major Italian restaurant competitor Prezzo shut down the majority of its restaurants past year.

TV presenter Jake Humphrey wrote: "People who aren't bothered about Pizza Express folding have never been in a town they don't know, at 3pm, with two screaming, hungry kids & a headache".

Share