PizzaExpress Gets Approval From Lenders To Close 73 Outlets
Restaurant group PizzaExpress has said that its lenders have approved a plan to shut down 73 of its restaurants in the UK, as pandemic-led store closures and mounting costs hurt the privately held company.
Company Voluntary Arrangement
More than 89% of creditors who participated in the vote favoured the company voluntary arrangement (CVA), PizzaExpress said in a statement.
Last month, PizzaExpress, which has over 350 restaurants currently open in the UK, said that it had launched the CVA that would lead to 1,100 job cuts. Measures included reducing rents and temporarily switching to monthly agreements.
CVAs allow retailers to avoid insolvency by offloading unwanted stores and securing other measures in a bid to reach a compromise with creditors.