Skip navigation

Gloucestershire Business News

Pizza Express calls in advisors over £1billion debt pile

Pizza Express could be the next high-profile High Street name to hit the buffers, according to reports.

Financial markets experts Bloomberg have reported that the group have hired financial advisors Houlihan Lokey Inc to advise on how to deal with its creditors.

The restaurant chain, which has outlets in Gloucester Quays and on Im

perial Square in Cheltenham reported debts of more than £1billion in their latest annual report.

Around half of that debt is owed to the group's Chinese parent company and does not have to be repaid.

But more than £465million of that bill is reported to be repaid within 18 months with a further £200million due a year later.

With the chain operating 470 restaurants over the UK, the amount of debt per restaurant that has to be repaid within the next two-and-a-half-years equates to more than £1.5million per outlet.

And while the reports claim there is no immediate danger of the company folding and the 470 restaurants closing, it does not auger well for the future.

With Prezzo and Jamie's Italian both being forced to close in the past year and The Restaurant Group, owner of Frankie and Benny's and Chiquito promising store closures, the sector is struggling.

According to the latest full-year results released earlier this year, the company was paying £93 million in interest on its debt pile each year.

That figure is nearly three times the operating profit figure of £38million that the company reported for the year to December 2018.

Related Articles

Coronavirus LIVE Updates: The latest news from across Gloucestershire on Friday, August 7 Image

Coronavirus LIVE Updates: The latest news from across Gloucestershire on Friday, August 7

The latest important news and updates from across Gloucestershire as the coronavirus crisis continues.

Jigsaw could be next missing piece on Cheltenham Promenade Image

Jigsaw could be next missing piece on Cheltenham Promenade

Cheltenham's beleaguered Promenade could be facing another blow with fashion retailer Jigsaw close to launching a CVA.

City traders frustrated by surprise street market  Image

City traders frustrated by surprise street market

Food from around the world has taken over the Gate Streets in Gloucester - much to the surprise of some of its usual inhabitants who say they are losing out to the visiting competition.

On-street parking charge increase planned for September Image

On-street parking charge increase planned for September

The council has now revealed that the three per cent increase will take place from next month.

Copyright 2020 Moose Partnership Ltd. All rights reserved. Reproduction of any content is strictly forbidden without prior permission.