Prezzo plc (AIM:PRZ) will avoid paying any landlords it owed money to under a new restructuring plan which was approved by the High Court this week.
In May, the group warned that it would go bankrupt if the restructuring plan was not approved, having been unable to pay off £70mln in liabilities.
Under the new plan, all creditors of the pizza chain will be wiped out, apart from HMRC which will recover £3.3mln of the £11.8mln it is owed.
Prezzo owed around £30mln in rent to the landlords of around 50 loss-making sites that were shut down in April.
The unfortunate landlords will get nothing under the new plans.
Todd Boehly’s Cain International, the private equity owner of Prezzo, continues its support of the group with a £24.4mln secured loan note.
If the embattled group does fall into administration it is believed to be worth between £10mln and £14mln, according to insolvency specialist FRP Advisory.
The troubles of Prezzo echo similar headwinds being faced by the whole restaurant sector.
In the first quarter of 2023, 570 restaurants closed making it the worst period for the industry in the last decade.