Pizza Express is planning to close at least 67 of its UK restaurants putting up to 1,100 jobs at risk as a result – which could include their Hitchin branch.

The company announced on Tuesday morning it is planning to enter a company voluntary arrangement (CVA) in the 'near future' in a bid to push down its rents – including their site on the corner of Hitchin Market Place and Sun Street.

The decision could lead to the closure of 15 per cent of its 449 UK restaurants – but the company insists the move would safeguard the majority of its 9,000 staff.

Pizza Express' CVA is linked to a particular debt restructuring arrangement that has been agreed with the company's bondholders intended to cut its debt obligations to around £319m down from £735m.

The move comes amid a 'significantly more challenging environment' following the coronavirus pandemic and subsequent lockdown, which slammed the doors shut on restaurants for months.

The firm closed all 400 of its UK restaurants on March 23, as well as more than 100 overseas, after lockdown restrictions were imposed, in a bid to stop the spread of coronavirus.

Andy Pellington, group chief finance officer, said: "While we have had to make some very difficult decisions, none of which has been taken lightly, we are confident in the actions being taken to reduce the level of debt, create a more focused business and improve the operational performance, all of which puts us in a much stronger position.

"We can now plan to invest in both our UK&I and international businesses as well as support our teams as they return to work."

advertisement

Zoe Bowley, UK and Ireland managing director, said: "Our business has a long history of success, but the UK-wide lockdown has hit the hospitality industry particularly hard.

"While the financial restructuring is a positive step forward, at the same time we have had to make some really tough decisions.

"As a result, it is with a heavy heart that we expect to permanently close a proportion of our restaurants, losing valued team members in the process."

She added: "As we continue to reopen our restaurants for dine-in and delivery, we will successfully navigate the extended period of social distancing expected in the months ahead and, in so doing, protect 9,000 jobs."

Follow Hitchin Nub News on Twitter