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| Prezzo set to close 100 restaurants in rescue attempt | Prezzo set to close 100 restaurants in rescue attempt |
| (about 3 hours later) | |
| Italian restaurant chain Prezzo is preparing to close around 100 of its 300 stores in an attempt to rescue the business, the BBC understands. | Italian restaurant chain Prezzo is preparing to close around 100 of its 300 stores in an attempt to rescue the business, the BBC understands. |
| The chain - which is owned by private equity firm TPG Capital - employs around 4,500 people. | The chain - which is owned by private equity firm TPG Capital - employs around 4,500 people. |
| Prezzo is also expected to completely close its TexMex chain Chimichanga, which has 33 restaurants in the UK. | Prezzo is also expected to completely close its TexMex chain Chimichanga, which has 33 restaurants in the UK. |
| The closures would form part of a deal to renegotiate debts owed by the company to its landlords. | The closures would form part of a deal to renegotiate debts owed by the company to its landlords. |
| Specialist restructuring firm AlixPartners is understood to be drafting a company voluntary arrangement (CVA) - a step short of going into administration - on the company's behalf. | Specialist restructuring firm AlixPartners is understood to be drafting a company voluntary arrangement (CVA) - a step short of going into administration - on the company's behalf. |
| The CVA would allow Prezzo to continue trading without being pursued for the money it owes. | The CVA would allow Prezzo to continue trading without being pursued for the money it owes. |
| What’s eating the restaurant trade? | What’s eating the restaurant trade? |
| Jamie Oliver closes flagship restaurant | Jamie Oliver closes flagship restaurant |
| The situation means that hundreds of jobs are hanging in the balance, but the firm is expected to redeploy staff if it can. | The situation means that hundreds of jobs are hanging in the balance, but the firm is expected to redeploy staff if it can. |
| Prezzo was bought by TPG in 2014 for just over £300m. | Prezzo was bought by TPG in 2014 for just over £300m. |
| It is the latest of a string of High Street firms to run into difficulties. Earlier the UK arm of toy retailer Toys R Us and electronics chain Maplin both collapsed into administration. | |
| Burger chain Byron and Jamie's Italian have both had to undergo similar restructurings this year, agreeing rescue plans with their lenders and landlords, and closing restaurants. | Burger chain Byron and Jamie's Italian have both had to undergo similar restructurings this year, agreeing rescue plans with their lenders and landlords, and closing restaurants. |
| Barbecoa, a smaller business owned by Jamie Oliver, went into administration earlier this month. | Barbecoa, a smaller business owned by Jamie Oliver, went into administration earlier this month. |
| Analysts have said fears over the strength of the UK economy have meant consumers have cut back on discretionary spending. | Analysts have said fears over the strength of the UK economy have meant consumers have cut back on discretionary spending. |
| Last year, consumer spending fell for the first time since 2012, according to payments processor Visa. | Last year, consumer spending fell for the first time since 2012, according to payments processor Visa. |
| Wages have also been rising at a slower pace than inflation, leaving consumers worse off. | Wages have also been rising at a slower pace than inflation, leaving consumers worse off. |
| The restaurant sector has also faced higher costs for the ingredients it buys overseas due to the drop in the pound since the UK voted to leave the European Union. | The restaurant sector has also faced higher costs for the ingredients it buys overseas due to the drop in the pound since the UK voted to leave the European Union. |