Restaurant chain Prezzo has announced it is to axe 22 restaurants and cut 216 jobs after it was rescued out of administration by investment firm Cain International.
It currently has a site at Regent Circus in Swindon Town Centre.
Cain International, who had previously bought the chain in December, filed for insolvency after failing to reach an agreement with landlords over rent payments and have now bought the company back from administrators in a pre-pack deal to secure its future.
Jonathan Goldstein, chief executive of Cain International, said: “We firmly believe that strong hospitality businesses, such as Prezzo, have a bright future and will play an essential role in reviving the UK economy. However, to do so we must get through this current crisis of mounting liabilities and no revenues.
“The lack of visibility on when and how the sector will reopen has heightened economic uncertainty to the point where decisive action had to be taken to secure the future of the business and the majority of jobs for Prezzo’s people.
“We are deeply sorry for all those affected by the permanent closure of the 22 non-viable restaurants. It was a difficult but essential decision to take but doing so will allow us to save thousands of jobs and create more in the future.”
The deal will see 216 of the group’s 2,900 team members lose their jobs. Prezzo’s remaining 156 sites are expected to reopen when coronavirus restrictions are lifted.
