Prezzo reports £29m loss following CVA
The group shut almost a third of its estate last year off the back of falling sales, blaming rising costs and competition from other Italian casual dining brands. It is now left with 185 restaurants.
Yearly revenue fell from £211.6m to £157.2m, while adjusted EBITDA dropped from £19.5m in 2017 to £3.9m.
Café Rouge co-founder Karen Jones joined Prezzo as executive chairman in June 2018 and has since launched a turnaround plan to “rejuvenate” the business.
This includes a £5m refurbishment across up to 50% of its estate, and a £3m investment in technology, repairs and maintenance.
The company also completed a debt for equity swap in August 2018 which reduced its debt from £155m to £53m.
“Our industry has faced a tough time and Prezzo’s previous strategy of new openings and new concepts distracted from its mission of hospitality,” says Jones.
“A number of important mitigating actions were taken in 2018 and we’ve started 2019 with a clear plan and in good heart – focused on our people and on our customers, listening to them and serving them better.
“Our turnaround plan is at an early stage but I am delighted with the initial results and the positive feedback from our customers and our teams. Our concentration will always be on investing in our teams and ensuring that each customer who walks into a Prezzo has the best possible experience. Only through this will we ensure that every customer leaves wanting to return.”
Prezzo's high street competitor Carluccio's is also investing in a refurbishment of its estate after undergoing a CVA in 2018, while PizzaExpress is similarly rolling out a redesign.
