Prezzo closes 22 restaurants with 216 job losses under last rescue deal
Thursday, February 11, 2021
Cain International, a subsidiary which acquired Prezzo's just in December, recently bought its owner back from administrators in a pre-pack deal to safeguard its future.
The deal means that 216 of its 2.900 workforce will be out of a job.
All 178 of the chain's restaurants are currently shuttered to customers amid a recent nationwide ban on coronavirus, a number that is not expected to reopen until the measures are relaxed.
Prezo's restaurants have only run for 25 weeks of the past 52 weeks but fixed charges and rent have accumulated, said Mr Cain.
The company went bankrupt after failing to negotiate any arrangement with the landlords about rent payments.
Jonathan Goldstein, Cain International CEO, said: 'We firmly believe that strong hospitality businesses, such as Prezzo, have a bright future and will play an essential role in reviving the UK economy. However, to do so we must get through this current crisis of mounting liabilities and no revenues.
Earlier this week, Sky News reported that the owner was weighing up options with consultants from FTI consultancy to secure its future, including possible bankruptcy.