A restaurant chain that operates in Tayside and Fife has put itself up for sale as it has confirmed plans to close some of its branches.
Pizza Express has said it could close around 67 of its UK restaurants, with up to 1,100 jobs at risk, as part of a major restructuring plan to shore up its finances.
The chain operates from South Methven Street in Perth and South Street in St Andrews. Both branches are currently closed.
The dining chain said it plans to launch a Company’s Voluntary Arrangement (CVA) restructuring deal in the near future, in a move which could lead to the closure of 15% of its 449 UK restaurants.
However, it stressed that the final outcome of the restructuring has “yet to be decided”. A list of the branches earmarked for closure has not been made public.
Pizza Express said it has also hired advisers from Lazard to lead a sale process for the business.
The company closed all its UK restaurants on March 23 after the Government-mandated lockdown.
It previously did not comment on reports that ‘around 75’ of its outlets would close.
Andy Pellington, group chief finance officer, said: “While we have had to make some very difficult decisions, none of which has been taken lightly, we are confident in the actions being taken to reduce the level of debt, create a more focused business and improve the operational performance, all of which puts us in a much stronger position.
“We can now plan to invest in both our UK&I and international businesses as well as support our teams as they return to work.”
Zoe Bowley, UK and Ireland managing director, said the firm had been forced to make “really tough” decisions.
She said: “Our business has a long history of success, but the UK-wide lockdown has hit the hospitality industry particularly hard.
“While the financial restructuring is a positive step forward, at the same time we have had to make some really tough decisions.
“As a result, it is with a heavy heart that we expect to permanently close a proportion of our restaurants, losing valued team members in the process.”
