Prezzo reveals future of Kettering and Corby branches
Prezzo has revealed the future of its branches in Kettering and Corby after the company hit financial difficulties.
The Italian restaurant chain is set to enter a Company Voluntary Agreement (CVA), which will see the closure of 94 restaurants across the chain’s brand.
Under the CVA, both the branch in Parkland Gateway, Corby, and Market Place, Kettering, are listed as Category 1 leases.
This means Prezzo is planning on keeping both open as they are profitable at the current rent.
Sites that are planned for closure are listed as Category 4 leases - including Chimichanga next to Kettering’s Prezzo.
The Mexican chain is a subsidiary brand of Prezzo but is closing as it is not viable, even with a rent reduction.
The Chimichanga lease could be terminated within eight weeks of the CVA being agreed later this month.
A Prezzo spokesman said: “The proposal allows Prezzo to rationalise its estate and to reduce the cost of its leased restaurants.
“This will allow the company to focus its resources on the core, more profitable restaurants whilst continuing to meet its obligations to suppliers and creditors.
“Prezzo will be better placed to implement the changes required to refresh the Prezzo brand and to counter the economic challenges currently affecting the casual dining sector.
“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.”
Northampton, Peterborough and Rugby’s Prezzo will also be staying open.
But the Prezzo in Stamford is one earmarked for closure.