End of Chimichanga as Prezzo to close 94 sites to save 206


Troubled casual dining chain, Prezzo has won agreement from creditors on a rescue deal that will see it close 94 of its 300 restaurants.

The 94 closures includes all 33 of its Tex-Mex-style Chimichanga branded restaurants, and all the site will shut in April and May. The company said that staff would be made aware as soon as they have been confirmed.

The move could possibly affect 500 jobs, according to Sky News, but Prezzo said efforts would also be made to redeploy workers.

Owned by the private equity firm TPG Capital, Prezzo's plan will also see rent reductions of 25% to 50% at 57 sites.

The casual dining sector is being particularly hard hit with rising costs etc and has seen a number of chains struggle including Jamie's Italian and Byron. Prezzo chief executive Jon Hendry-Pickup said, 'While we continue to be profitable, the pressures on our industry have been well documented.'