The non-public fairness firm which purchased Italian chain Prezzo in December is reportedly mulling placing the restaurant group via an insolvency method.
Sky Information claimed that Cain Worldwide was considering a amount of solutions, such as pre-pack administration, as uncertainty above the potential of the informal dining sector goes on.
The firm, which also owns Swingers nuts golfing, is presently in talks with numerous landlords about future lease arrangements and the payment of arrears.
It is reportedly working with FTI Consulting on what choice to take, dependent on the outcomes of the talks.
Cain International acquired up Prezzo in December in what was noticed as a vote of self confidence in the sector, which has been laid small by the pandemic.
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At the time, the organization said that it would guidance Prezzo’s ambition to turn into the “UK’s favorite Italian” and aid reinvigorate substantial streets as they get started to recuperate from the Covid-19 crisis.
But with the British isles presently in the midst of a 3rd national lockdown, and facts of the lifting of limitations but to materialise, fears about the long term of superior road stalwarts like Prezzo goes on.
As a end result of the pandemic, numerousprominent chains, together with the owners of Ask Italian, Pizza Specific, Leon and Wahaca, used insolvency procedures final yr.
A spokesperson for Cain Intercontinental reported: “The existing, open up-ended lockdown, enforced in January 2021, resulted in the required closure of all Prezzo’s 178 dining establishments.
“As these kinds of, we are continuing our conversations with stakeholders this kind of as our landlords, to defend the potential of this good brand and its devoted staff.”
City A.M. has contacted Prezzo for remark.
The publish Cain Intercontinental mulling insolvency process for Italian chain Prezzo – report appeared 1st on CityAM.