The Classy Investors

  /  Stock   /  PizzaExpress plans to shut 15% of UK outlets, cut over 1,000 jobs

PizzaExpress plans to shut 15% of UK outlets, cut over 1,000 jobs

imageStock Markets6 hours ago (Aug 04, 2020 06:20AM ET)

(C) Reuters. A person is seen walking past an empty Pizza Express restaurant in London as the number of coronavirus cases grow around the world.

(Reuters) – Privately held restaurant group PizzaExpress said on Tuesday it could shut nearly 15% of its UK restaurants, putting 1,100 jobs at risk, as part of a restructuring deal to help reduce debt and infuse capital.

The company, which operates 449 restaurants in the UK and is currently owned by Chinese private equity firm Hony Capital, said it had started a sale process to find a new owner.

PizzaExpress said it will soon launch a company voluntary arrangement in the UK as part of an agreement with some of its secured creditors and its majority shareholder.

The deal includes reducing the company’s external debt from 735 million pounds ($959.84 million) to 319 million pounds, a provision of up to 144 million pounds and the divestment of its mainland China business.

The restaurant group said its bondholders would acquire the company if a third party does not outbid them.

PizzaExpress, which had to shut its outlets during coronavirus lockdowns, said 166 of its restaurants are now open and further reopenings are well underway.

“Customer demand has been encouraging at 60 restaurants that reopened in early July,” it said.

PizzaExpress plans to shut 15% of UK outlets, cut over 1,000 jobs

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.