Ely pizza and pasta lovers will be relieved to hear that the city’s popular Prezzo restaurant has survived the cutter for now, Spotted in Ely can reveal.
The struggling Italian chain plans to shut down a third of its restaurants in a bid to save the company.
But the Ely restaurant, overlooking Ely Cathedral, is making enough profit to stay on the company’s safe list.
Yesterday Prezzo announced it had entered into a company voluntary agreement (CVA), a procedure under the Insolvency Act, “in order to deliver a sustainable long-term plan for its business”.
Prezzo has submitted a restructuring plan to its creditors and will seek their approval of the CVA at a creditors’ meeting on March 23.
If given the go ahead, it will shut down 94 of its 300 restaurants across the country – but the Ely branch is set to remain open for now.
The popular High Street eatery is classified as a “category 1” lease restaurant, meaning it’s performing adequately at the current rent.
The group operates a number of chain across the country, including Chimichanga, Caffe Uno, Cleaver and MEXIco, but its core brand is Prezzo.
Over the years, Prezzo has suffered stiff competition from other brand names, such as Pizza Express, ASK Italian, Zizzi and Bella Italia.
The CVA allows a company to come to an arrangement with its creditors over the payment of its debts.
If the agreement isn’t approved, Prezzo is likely to enter into administration.
Prezzo was bought by private equity firm TPG in 2014 for just over £300 million.
It’s been a tough week for retailers, with Maplin and Toys R Us both going into administration.