Jobs axed as two restaurants across Port Solent and Whiteley to close
ITALIAN restaurant chain Prezzo has announced it is looking to axe about a third of its sites in the UK '“ including two in the Portsmouth area.
The company confirmed it will shut 94 restaurants, which includes Chimichanga outlets in Whiteley and Port Solent.
It is thought the move will result in about 1,000 jobs being axed across the nation.
Many of the eateries closing are from Prezzo’s subsidiary brands, which include Chimichanga, MEXico and Cleaver.
The firm has now launched a company voluntary arrangement which states it will close branches which would not be profitable even with a rent reduction.
Jon Hendry-Pickup, Prezzo chief executive, said: ‘Prezzo’s core business today is fundamentally strong and has fantastic potential. However, the well-documented pressures on our industry mean a number of our restaurants are underperforming. While we continue to be profitable and cash-generative, our position is not sustainable, so we must take decisive action now to ensure we’re able to thrive in the future.’
Prezzo has stressed that, although there will be job losses, it will try to redeploy staff where possible.
Mr Hendry-Pickup added: ‘We recognise this process will impact many of our team members and their families. We are committed to keeping them informed, and will be doing all we can to support them during this difficult time.’
It is thought the 94 restaurants on the chopping board will be shut in the next eight weeks.