Prezzo launches bid to sell off 10% of locations

MANCHESTER, ENGLAND - JANUARY 06: A general view of restaurants in Media City on January 6, 2012 in Salford, Manchester, England. The Media City complex is the new base for up to 2,300 BBC staff, with the corporation's childrens, learning, future, sport and technology departments as well as part of Radio 5 Live and BBC Breakfast. (Photo by Bethany Clarke/Getty Images)

UK restaurant group Prezzo is looking to sever ties with 10% of its locations in an effort to nurture new sites. 

It has been reported that the equity-backed company has appointed property agents JLL and AG&G to find buyers for 27 underperforming or unprofitable properties within its portfolio.

The offering includes eight Chimichanga Tex-Mex restaurants and nineteen Italian restaurants of the group’s name.

The decision to sell off 10% of sites comes a almost a year on from the appointment of former Travelodge COO Jon Hendry-Pickup, as the company’s chief executive.

According to MCA, the restaurant and pubs industry website, most of the sites have been valued at between £100,000 and £150,000.

In a statement reported by The Times, Hendry-Pickup said: “So that Prezzo is best positioned for further growth, we’re reviewing the potential disposal of a select number of leases where trading is not in line with the rest of the portfolio, while continuing our programme of opening new restaurants and investing in refurbishments.

“We’ve successfully opened 21 restaurants in the past year, with more planned in the coming months, and have launched a new look and feel for our Winchester Prezzo just this week.”

Prezzo’s decision comes after similar moves by other operators.  The Restaurant Group has sold or closed 45 loss-making or underforming restaurants, mainly under the Frankie & Benny’s, Coast to Coast and Chiquito brands, in the last 18 months.

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