PizzaExpress May Shut 15 Percent of UK Outlets, Cut 1,100 Jobs

Restaurant group PizzaExpress may shut nearly 15 percent of its UK restaurants and cut 1,100 jobs, as part of a restructuring intended to cut debt and respond to the challenges posed by the CCP virus pandemic.

The company, which operates 449 restaurants in the UK and is currently owned by Chinese private equity firm Hony Capital, said it had started a sale process to find a new owner.

Part of the plans involve the divestment of the groups mainland China business, where it operates 60 restaurants.

A server carries food past a sign promoting the British Governments “Eat out to Help out” scheme to get consumers spending again, outside a restaurant in Manchester, northwest England, on Aug. 3, 2020. (Oli Scarff/AFP via Getty Images)

The UK hospitality sector has been hit hard by the lockdown measures imposed to curb the spread of the CCP (Chinese Communist Party) virus, commonly known as the novel coronavirus.

All of PizzaExpresss UK restaurants were closed on March 23 during the national lockdown. Only 166 have thus far reopened, the group said.

A deal reached with its secured creditors and its majority shareholder Hony Capital includes reducing the companys external debt from 735 million pounds ($955.98 million) to 319 million pounds ($414.91 million), and a provision of up to £144 million for the future development of the business, £70 million of which will be available to support the re-opening of PizzaExpress restaurants in the UK.

The restructuring may result in the permanent closure of around 15 percent of its outlets, with up to 1,100 jobs at risk, the group said in a statement.

Two people make their way into a McDonalds restaurant that will only be offering takeaways due to the CCP virus in Plymouth, UK, on March 19, 2020. (Dan Mullan/Getty Images)

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