The Stratford-upon-Avon Prezzo restaurant has been named among a list of locations set to close as the Italian restaurant chain attempts to evade administration. The 22 Wood Street location in Stratford is among 94 Prezzo locations set to close, which includes all 33 of its TexMex Chimichanga restaurants.
A Prezzo spokesperson confirmed the Stratford restaurant location was among the list set to close.
The closest Prezzo restaurant to Stratford is located in Leamington Spa on Regent Grove near town centre.
Prezzo released the following statement:
Prezzo today announces it has entered into a Company Voluntary Arrangement (CVA) process with the intention of securing a sustainable, long-term future for the company.
As part of the process, Prezzo will seek the approval of creditors to reduce the rent costs of some of its sites and reshape the business around a smaller, profitable core of restaurants with strong growth prospects.
Jon Hendry-Pickup, CEO of Prezzo, said: “Prezzo’s core business today is fundamentally strong and has fantastic potential. However, the well-documented pressures on our industry mean a number of our restaurants are underperforming. While we continue to be profitable and cash-generative, our position is not sustainable, so we must take decisive action now to ensure we’re able to thrive in the future.”
While the 208 restaurants that make up that core will continue to trade as normal, the company expects that 94 will be closed as part of the process. Closures are expected to commence from April 2018. Every effort will be made to redeploy those team members affected by the closures.
“We recognise this process will impact many of our team members and their families. We are committed to keeping them informed, and will be doing all we can to support them during this difficult time.” Hendry-Pickup added.
Prezzo is currently well-advanced in the implementation of a comprehensive transformation plan.
Hendry-Pickup commented: “We understand we need to be proactive in meeting the evolving needs of our customers, and are working extremely hard to make Prezzo a memorable and distinctive brand and experience. We’re seeing some early successes – the new ‘look and feel’ we’ve been piloting in a number of our restaurants, for example, has been very well-received by our customers leading to more visits and better sales.”
“I firmly believe the business has a bright future. While the decision to enter into a CVA process was extremely tough, it was crucial to ensuring we’re able to continue to serve our customers for years to come.”
Prezzo will solicit approval of the CVA from its creditors over the next two to three weeks.
Another Stratford business, Maplin electronics, could be in jeopardy after the company recently entered administration.
PwC (PricewaterhouseCoopers) have been appointed as administrators of Maplin Electronics Limited.
A spokesperson with PwC said there are 10 employees at the Stratford store located on Birmingham Road near the Maybird Centre. The spokesperson said its business as usual for the Maplin stores of which none were set to close and were just under review.
A PwC statement about Maplin being placed in administration read as follows:
“Maplin Electronics Limited is a leading UK retailer selling electrical goods to consumers. The company employs 2,335 members of staff and has an annual turnover of £235.8m. Maplin operates 217 stores across the UK and Ireland.
The company experienced a decline in performance as a result of the softening of consumer demand in what has been a challenging retail environment and higher-priced (US denominated) products. A solvent sale of the business had been pursued by management in recent weeks but unfortunately could not be concluded. Given the cash position of the company, the directors resolved to put Maplin into administration.
The joint administrators will continue to trade the business as normal whilst discussions take place with interested parties in an attempt to find a buyer.
Zelf Hussain, joint administrator and PwC partner, said:
“The challenging conditions in the UK retail sector are well documented. Like many other retailers, Maplin has been hit hard by a slowdown in consumer spending and more expensive imports as the pound has weakened.
“Our initial focus as administrators will be to engage with parties who may be interested in acquiring all or part of the company. We will continue to trade the business as normal whilst a buyer is sought.
“Staff have been paid their February wages and will continue to be paid for future work while the company is in administration.”