The company has blamed the coronavirus epidemic and the closure of the decision, which means that about 16% of its facilities will be closed. The company, which currently owns about 454 restaurants in the UK, said this evening it had finalized a proposal to reduce its restaurant and rental costs through the company’s voluntary program (CVA).
We said that although most of its restaurants were profitable before the launch, their salaries have been declining across Pizza Express over the past three years.
As UK death toll rises 41,369 restaurant, reopening costs and the UK economic future uncertain that its rental costs were no longer valid. Zoe Bowley, managing director of Pizza Express in the UK and Ireland, said: ‘Unfortunately, the impact of the global epidemic means we have to make very difficult decisions to protect Pizza Express in the long run. The company blamed the coronavirus epidemic and the closure decision ‘Today we have confirmed that our 73 pizzas are proposed to be permanently closed.’ Ms Bowley said in most cases, stores selected to close close to one another. The remaining Pizza Express reopens or will reopen soon.
He added: ‘We are very focused on our people whose jobs are affected and we will be doing everything we can to reuse them or support them in finding roles elsewhere. ‘Although the process is difficult, it will protect the jobs of our more than 9,000 partners and provide strong support for Pizza Express to meet future challenges and opportunities.’ Pizza Express, a major company owned by Chinese company Hony Capital, has also confirmed that. he had hired consultants from Lazard to lead the business marketing process. It said it would hold a visible meeting of its lenders on September 4 to get approval for the steps set out in the CVA.
Melanie Leech, chief executive of the British Property Federation, said: ‘These situations have never been easier, especially now in the hospitality, tourism and leisure businesses on our highways at the great end of the Covid-19 epidemic. Owners, however, need to consider the impact on their investors, including millions of people with their savings and pennies in the auction, as they vote on any CVA proposal. ‘The company said the rental costs could no longer be recovered and began the company’s voluntary program (CVA) to improve its finances by cutting lease and short-term leases from quarter to monthly taxes.
“No matter how difficult this process is, it will protect the jobs of our more than 9,000 partners,” Zoe Bowley, a UK and Ireland manager, said in a statement.
The group had said earlier this month that 166 of its restaurants were now open and further reorganization was underway.