Pizza Express will axe 1,300 jobs after increased Covid curbs hit profits even further – two months after announcing 73 UK restaurants would close
- Pizza Express will cut around 1,300 jobs across its UK restaurants, its bosses say
- It comes after the chain announced in August it would close 73 of its restaurants
- The company said earlier this year that it had been hit by Covid-19 uncertainty
Pizza Express has announced it is cutting around 1,300 jobs across its UK restaurants after recent trading worsened in the face of tightened restrictions.
Bosses at the popular restaurant chain say they are not closing any restaurants but are instead slimming down its existing team.
It comes after the popular chain announced in August that it would close 73 of its restaurants across Britain in a bid to stay afloat in the wake of the coronavirus shutdown.
The company, which currently has 370 UK restaurants, said earlier this year that it has finalised a proposal to reduce its restaurant and rental costs via a company voluntary arrangement (CVA).
Pizza Express has said it is cutting around 1,300 jobs across its UK restaurants after recent trading worsened in the face of tightened restrictions
Bosses revealed in August that although the majority of its restaurants were profitable before lockdown was imposed, earnings had been declining across the Pizza Express estate for the last three years.
As part of the announcement earlier this year, bosses of the chain added that the reduction in revenue caused by the enforced closure of all restaurants, the cost of reopening and the UK’s uncertain economic future meant its rental costs were no longer sustainable.
Pizza Express, which is majority owned by Chinese firm Hony Capital, also confirmed in August that it had hired advisers from Lazard to lead a sale process for the business.
The company was set to have a meeting in September about the CVA plans.
Following the meeting, bosses at Pizza Express said 89 per cent of those it owes money to voted in favour of a its CVA deal – which is used by companies to cut costs, particularly in terms of rent.
It was reported earlier this year that the deal would reduce the companies deby pile from £735million to £319million, with some of the money it owes being written off.
THE FULL LIST OF PIZZA EXPRESS RESTAURANTS, AS ANNOUNCED IN AUGUST
Aberdeen, Belmont Street
Barnstaple, Three Tuns
Birmingham, Corporation Street
Bournemouth, Post Office Road
Bristol, Berkeley Square
Bristol, Regent Street
Dudley, Merry Hill
Earl’s Court, Earls Court Road
Fulham Palace Road
Glasgow, Princes Square
Ipswich, Lloyds Avenue
Leeds, Crown Street
Newport, Isle of Wight
Newport, South Wales
Oxford, Oxford Castle
Reading, St Mary’s Butts
Sheffield, Devonshire Street
Sheffield The Moor
Southport, Old Bank