Peterborough's Chimichanga restaurant earmarked for closure

The Italian restaurant chain, Prezzo, has announced its restructuring plan in a bid to put the business on a sustainable footing.

The chain has been battered by costs from higher wages and business rates.

It is seeking agreements from its landlords to reduce its rents on its outllets across the country through a company voluntary arrangement (CVA).

The CVA states it will close branches that will not be profitable even with a rent reduction.

The company has earmarked 94 restaurants for closure nationally with the closures expected within eight weeks.

They include the Tex-Mex eaterie Chimichanga in Church Street, Peterborough.

The Prezzo restaurant in Cowgate, Peterborough, will remain open.

Creditors will be asked to approve the CVA on March 23.

The CVA states: "Prezzo will be better placed to implement the changes required to refresh the Prezzo brand and to counter the economic challenges currently affecting the casual dining sector.

"This proposed restructuring, under the terms of a CVA will allow Prezzo to continue operating while it implements plans to improve its food and service and to invest in new restaurant layouts and designs."

The CVA adds: "If approved by the creditors, the CVA proposal will substantially reduce Prezzo’s rental obligations and will move the business towards a more robust business model. Where restaurants are closed, we will do everything possible to redeploy staff to other sites."