Prezzo has secured the 75%-plus approval it required from creditors to push ahead with restructuring proposals outlined in its Company Voluntary Arrangement.
The troubled chain will now proceed with plans to shut 94 of its 300 restaurants and axe its Tex-Mex brand Chimichanga altogether. It is understood the closures will be completed by the end of May.
As revealed by FEJ last month, Prezzo opted for a CVA in a bid to avoid going into administration. 88% of creditors backed the proposals following a vote last week.
Jon Hendry-Pickup, CEO of Prezzo, thanked creditors and landlords for supporting the transformation plan outlined in the CVA during what he called a “challenging” process for the business.
“While we continue to be profitable, the pressures on our industry have been well documented. Despite this being a tough decision, the support given today by our creditors shows that they believe we have the right approach to transforming Prezzo in the eyes of teams, customers and stakeholders.”
Prezzo intends to roll out a new layout and design across the chain’s top-performing restaurants now that the CVA has been approved.
In order to establish a strong core estate, restaurants are being redesigned by adopting what Prezzo bosses describe as a “new look and feel model”.
While the transformation plan is only in its early stages, “significant” improvements in cover growth, reduced team turnover, customer satisfaction, cost control and revenues have been recorded in restaurants that have been revamped already, the chain claims.