PizzaExpress Creditors Approve Closures, 1,100 Jobs at Risk
- Majority of landlords voted for plan to cut rents, close sites
- Private equity owner Hony to cede control to bondholders
A PizzaExpress Ltd. restaurant sits empty in the West End district in London, on March 20.
Photographer: Simon Dawson/BloombergThis article is for subscribers only.
PizzaExpress’s creditors approved a company proposal to cut rents and shut 73 of its U.K. restaurants as part of the chain’s effort to fix its finances amid the economic slump. The plan will put 1,100 job at risk.
Almost 90% of the firm creditors and a majority of landlords supported a so-called Company Voluntary Arrangement proposed by the company, according to a regulatory filing on Monday. The deal paves the way for a financial restructuring which will see owner Hony Capital ceding control of operations, except for China, to creditors.