As Pizza Express’ CVA sees the closure of 73 outlets, with 1,110 job losses across the UK, BLM’s insolvency law specialist Stuart Evans looks at the options available for high street restaurant chains
Pizza Express is far from the first, and is unlikely to be the last, to face problems, with UK hospitality staples such as Chiquito, the owner of Bella Italia and Café Rouge, and also Carluccio’s all recently entering administration. The latter brand was bought in an 11th-hour rescue deal by Boparan Restaurant Group, although some restaurant sites were excluded from the deal and closed.
While Covid-19 has obviously had a detrimental effect on their current position, from an insolvency perspective, many of these chains had problems that pre-dated the pandemic. Nevertheless, there’s no denying that hospitality has been devastated by the impact of lockdown.
While bars, pubs, cafes and restaurants have been allowed to reopen on restricted terms in recent months, social distancing, increased hygiene measures and consumer wariness have left chains and independents alike facing difficult decisions.
