Four popular Pizza Express restaurants have been earmarked for closures as part of plans by the chain to bring down rents.
The pizza and pasta firm, first launched in London back in 1965, unveiled plans for potential closures at the start of the month as it battles to stay afloat in the face of the coronavirus pandemic.
It has now published a list of all 73 restaurants it will shut, with the potential loss of 1,100 jobs – including sites at Newcastle’s Dean Street, Darlington, Gosforth and Dalton Park.
The Eldon Square, Gateshead Metrocentre, Durham and Jesmond restaurants, however, will remain open.
The company, which currently has around 454 restaurants in the UK, said it has now finalised a proposal to reduce its restaurant and rental costs via a company voluntary arrangement (CVA), and that it will now focus on trying to redeploy staff affected.
It said that although the majority of its restaurants were profitable before lockdown was imposed, earnings had been declining across the Pizza Express estate for the last three years.
It added that the reduction in revenue caused by the enforced closure of all restaurants, the cost of reopening and the UK’s uncertain economic future meant its rental costs were no longer sustainable.
Pizza Express, which is majority owned by Chinese firm Hony Capital, also confirmed it had hired advisers from Lazard to lead a sale process for the business.
It said it would hold a virtual meeting for its creditors on September 4 to seek approval for the measures set out in the CVA.
Zoe Bowley, UK&I managing director, said: “The announcement of the CVA proposal follows a period of constructive dialogue with the British Property Federation and a broad range of our landlords. We have taken onboard their feedback and accommodated their requests as far as possible.
“Unfortunately, the impact of the global pandemic has meant that we have had to make some incredibly tough decisions to safeguard Pizza Express for the long term. Today we have confirmed that 73 of our pizzerias are proposed to close permanently.
“In most cases, there is another PizzaExpress nearby, either already open or reopening soon, to welcome our customers. Our focus is on our people whose jobs are impacted and we will be doing everything we can either to redeploy them or to support them in finding roles elsewhere.
“Hard as this process is, it will protect the jobs of over 9,000 of our colleagues and provide a strong footing for PizzaExpress to meet future challenges and opportunities.”
Melanie Leech, Chief Executive, British Property Federation (BPF), commented: “These situations are never easy, particularly now for the retail, hospitality and leisure businesses on our high streets at the sharp end of the COVID-19 pandemic. Property owners, however, need to take into consideration the impact on their investors, including the millions of people whose savings and pensions are invested in commercial property, as they vote on any CVA proposal.
“PizzaExpress and Deloitte engaged with the BPF before launching this CVA proposal. This has provided us an opportunity to improve understanding of property owners’ interests and concerns, but ultimately it will be for individual property owners to decide how they will vote on the CVA.”
The following restaurants have been earmarked for closure:
Aberdeen, Belmont St
Aylesbury
Barnstaple, Three Tuns
Biggleswade
Billericay
Birmingham, Corporation St
Birmingham, Mailbox
Bournemouth, Post Office Rd
Bramhall
Bristol, Berkeley Sq
Bristol, Regent St
Bromsgrove
Bruton Place
Charlotte St
Chippenham
Dalton Park
Darlington
Dudley, Merry Hill
Earls Court, Earls Ct Rd
Edinburgh, Holyrood
Formby
Fulham Palace Road
Glasgow, Princes Square
Glossop
Gosforth
Grantham
Halifax
Hampstead
Hatch End
Hereford
Heswall
Ipswich, Lloyds Ave
Leeds, Crown St
Leeds, Horsforth
Ludlow
Lymington
Melton Mowbray
Midhurst
Milton Keynes, Hub
Moseley
New Brighton
Newcastle, Dean Street
Newport, Isle of Wight
Newport, South Wales
Northallerton
Nottingham, Goosegate
O2 Finchley
Orpington
Oxford, Oxford Castle
Poole
Port Solent
Ramsgate
Reading, St Mary's Butts
Scarborough
Sheffield, Devonshire St
Sheffield The Moor
Shirley
Southport, Old Bank
Stafford
Staines
Stoke
Stourbridge
Sudbury
Torquay
Uxbridge
Wakefield
Walsall
Wapping
Wardour St
Weston-super-Mare
Whiteley Village
Whitstable
Wrexham
