THE Penarth branch of national Italian restaurant chain Prezzo is set to close, as part of a bid by the company to save itself from going bust.
The company has entered into a Company Voluntary Arrangement (CVA) process, meaning it will restructure its business in an effort to prevent it from going into liquidation.
As part of this, 94 restaurants across the UK, including the branch in Windsor Road, Penarth, will be closed.
The Penarth restaurant, which was only opened in 2015, has been listed as one of the chain’s branches deemed as “clearly not viable” and with “no prospect of being restored to viability."
Newport’s Friars Walk branch has been listed as “uneconomical” and is reportedly not making a profit after costs are taken into account, but is not among those expected to close. Instead, the company will negotiate a revised lease with the building’s owner.
Chief executive Jon Hendry-Pickup said: “Prezzo’s core business today is fundamentally strong and has fantastic potential.
“However, the well-documented pressures on our industry mean a number of our restaurants are underperforming.
“While we continue to be profitable and cash-generative, our position is not sustainable, so we must take decisive action now to ensure we’re able to thrive in the future.”
He added: “We recognise this process will impact many of our team members and their families.
“We are committed to keeping them informed, and will be doing all we can to support them during this difficult time.”
The company has said closures will begin in April. It is unknown how many jobs will be lost, although Prezzo has said “every effort will be made to redeploy” staff.
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