The Pizza Express chain will close 73 of its current 454 units in Great Britain. This will result in the loss of around 1,100 jobs.
Although the sites have been profitable over the past three years, revenues have been declining. This process is primarily intended to reduce the item of rental costs, BBC News reports further. The online portal Propel reports that Deloitte was commissioned to manage the CVA process. In Great Britain, companies can enter into a Company Voluntary Arrangement (CVA). This voluntary agreement by a company is part of a wider restructuring of the business plan to secure finances.
The company also confirmed that consultants from Lazard were brought on board to assist in a sales process for the company. Currently, the Chinese company Hony Capital holds the majority stake.
Zoe Bowley, Managing Director of Pizza Express for the UK and Ireland, said: "Unfortunately, the impact of the global pandemic has meant that we have had to make some incredibly tough decisions to ensure Pizza Express remains viable in the long term". The closure of 73 restaurants should "protect the jobs of over 9,000 of our colleagues."
The brand with British roots counts another 100 restaurants internationally, including countries like China and India.