Prezzo to close Barnstaple restaurant
PUBLISHED: 16:50 05 March 2018 | UPDATED: 13:04 06 March 2018
Italian restaurant chain Prezzo will be closing its Barnstaple restaurant.
The restaurant in the High Street has been earmarked as one of 94 proposed closures by the company nationwide.
The chain said it hoped to reduce the cost of leased restaurants, allowing the company to focus resources on the more profitable sites, and to counter the ‘economic challenges currently affecting the casual dining sector’.
The company found the Barnstaple store was not profitable, even after applying a rent reduction.
It has pledged to do ‘everything possible’ to redeploy staff affected to other sites.
A statement from Prezzo said: “This proposed restructuring, under the terms of a company voluntary arrangement (CVA), will allow Prezzo to continue operating while it implements plans to improve its food and service and to invest in new restaurant layouts and designs.
“Under the CVA process, Prezzo has submitted a restructuring plan to its creditors and will seek their approval of the CVA at a meeting on 23 March 2018. If approved by the creditors, the CVA proposal will substantially reduce Prezzo’s rental obligations and will move the business towards a more robust business model.
“Where restaurants are closed, we will do everything possible to redeploy staff to other sites.”