PizzaExpress to close 15% of its UK biz

Casual dining PizzaExpress is planning to close about 67 restaurants in the UK which is 15 per cent of its business in the country.

It has also put its UK business for sale and has also warned of about 1100 job losses, reported The Financial Times.

PizzaExpress which operates 449 restaurants in the UK and is currently owned by Chinese private equity firm Hony Capital, said it had started a sale process to find a new owner.

The casual dining chain is also planning to launch a company voluntary arrangement in the UK as part of an agreement with some of its secured creditors and its majority shareholder.

The deal includes reducing the company's external debt from 735 million pounds ($959.84 million) to 319 million pounds, a provision of up to 144 million pounds and the divestment of its mainland China business. The restaurant group said its bondholders would acquire the company if a third party does not outbid them.