Italian restaurant chain Prezzo has signed a deal agreeing to shut 94 of its 300 outlets across the UK.
The company approved the company voluntary agreement (CVA) in a shareholder meeting today.
The CVA proposal was backed by 88% of the company’s creditors, and will see the outlets close in April and May. This will affect 500 members of staff, some of whom may be relocated to other restaurants.
All of the chain’s 33 TexMex Chimichanga restaurants will be closed.
Prezzo said staff would be made aware of exact closure dates as soon as they are confirmed.
The CVA lasts for two years and will include rent reductions ranging from 25 to 50%.
Jon Hendry-Pickup, chief executive of Prezzo, said: “I would like to thank our creditors and landlords for supporting our transformation plan. While we continue to be profitable, the pressures on our industry have been well documented.
“Despite this being a tough decision, the support given today by our creditors shows that they believe we have the right approach to transforming Prezzo in the eyes of teams, customers and stakeholders. It has been a challenging time during the CVA process and I would like to thank our suppliers, colleagues and customers for their patience and support.”