Prezzo’s restructuring plan receives approval
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Prezzo has received High Court backing for its restructuring plan which looks to bring the an end to “the strategic reshaping of [the] business”, the Italian restaurant chain said.
The Honourable Mr Justice Richard Smith approved the plan on Wednesday morning, concluding: “I am satisfied in all the circumstances of this case that the plan is a fair one.”
The court’s decision brings Prezzo’s strategic review to an end, which included the closure of over a third of the chain’s restaurants. It had cited an increase in the cost of utilities and food products as reasons for the closures.
Prezzo said the strategic review allowed the business to secure the long-term future of its remaining estate.
Prezzo previously went into administration in late 2020 before being purchased by private equity firm Cain International, who recently said it is remaining committed to the long-term future of the business.
Dean Challenger, chief executive of Prezzo, said the decision enables the chain to focus on building a “quality-led, profitable and sustainable” business.
it was revealed last week that H&M Revenue & Customs had opposed Prezzo’s restructuring plan, claiming that it was a method of avoiding tax that the chain owes, which stood at over £11m.
Prezzo’s secured lenders, which are due to be paid first following a restructuring agreement, are owed around £24m, according to Bloomberg. However the restaurant chain’s advisors at FRP believe the business is unlikely to be worth any more than £14m. Around £32m owed to Prezzo’s landlords would also likely be compromised.