Fears Over Future Of PizzaExpress Amid Claims It Is Preparing For 'Debt Talks'
PizzaExpress has called in financial advisers to help prepare for talks with creditors over huge debts, according to reports.
The restaurant chain's current debts stand at £665m. Its most recent accounts showed that it was in a whopping £1.1 billion debt at the end of last year - the equivalent of around £1.6 million for each of its restaurants.
A report in Bloomberg claims the chain has hired financial adviser Houlihan Lokey Inc to help it get ready for debt talks.
Representatives from Houlihan Lokey Inc declined to comment when approached by Bloomberg.
A spokesperson from PizzaExpress told Hull Daily Mail: "We are not commenting on the speculation about PizzaExpress appointing creditors."
According to the report, PizzaExpress has struggled with rising costs and a 'change of consumers' habits'.
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Pizza Express reportedly about to engage in talks with creditors. Last seen, had £1.6m of debt per restaurant. Not sustainable.
- Langton Capital (@langtoncapital) October 7, 2019
It's a tough time for restaurant chains, with celebrity chef Jamie Oliver announcing that his restaurant empire had collapsed and all 23 of his Jamie's Italian restaurants would be closing.
Speaking in May, Oliver said: "I am deeply saddened by this outcome and would like to thank all of the staff and our suppliers who have put their hearts and souls into this business for over a decade. I appreciate how difficult this is for everyone affected.
"I would also like to thank all the customers who have enjoyed and supported us over the last decade, it's been a real pleasure serving you.
"We launched Jamie's Italian in 2008 with the intention of positively disrupting mid-market dining in the UK high street, with great value and much higher quality ingredients, best in class animal welfare standards and an amazing team who shared my passion for great food and service. And we did exactly that."
Rival chain Prezzo last year announced that it would be closing 94 restaurants.
Featured Image Credit: PA
Topics: uk news