Fears that Pizza Express could be on the brink of collapse have intensified after the fast-food chain reportedly hired financial advisers as it prepares for talks with its creditors over its huge debts.
It is understood the company, which launched 54 years ago and which was acquired by Chinese private equity firm Hony Captial in 2014, has more than a billion pounds worth of debt.
It is believed to have appointed financial adviser Houlihan Lokey Inc. to prepare for debt talks with its creditors.
The news comes just months after rival Jamie's Italian closed, with the loss of 1,000 jobs, reports the Mirror.
The group's most recent accounts show the chain's total debt was £1.12billion at the end of last year - working out at £1.79million a restaurant.
Of that, £655.6million is due to be repaid by August 2022 - a large chunk of it in August 2021.
Bloomberg said representatives for PizzaExpress and financial service firms Houlihan Lokey and Perella Weinberg declined to comment.
Deliveroo
In recent years Pizza Express has looked to expand beyond its core UK restaurant business - by partnerships with supermarkets and Deliveroo in the UK and by looking at growth overseas.
It's also trying hard to beat the high street slowdown with new menu ranges, new restaurant designs and even opening new sites.
According to its most recent results, profits fell 7.7% in the first half of the year, but still came in at to £32.4million as sales rose slightly.
PizzaExpress chief executive Jinlong Wang said: “Intense competition in the casual dining sector encourages innovation and we are constantly seeking ways to increase appeal to new and existing customers."
He added: “Looking ahead, whilst we expect both the UK and Ireland and International markets to remain challenging, we are confident in our ability to successfully appeal to customers and believe that we will continue to deliver a resilient performance across the remainder of 2019.”
Hospitality industry expert Simon Mydlowski, a partner at Gordons law firm, said: “Pizza Express is seen by many as a more innovative, mainstream brand [than Jamie's Italian], but it is struggling with its cost base which is affecting the operating and profitability of the chain.”
