The restaurant chain Prezzo plans to close up to one-third of its 300 outlets across Britain, putting hundreds of jobs at risk as it joins a growing list of high street employers locked in a desperate battle to restructure their finances.
The chain, which is owned by private equity firm TPG Capital, employs about 4,500 people.
A CVA has to be agreed by creditors with a combined claim of more than 75% of what the company owes, with the remaining 25% bound by the same terms if the deal goes through.
Although CVAs are an insolvency procedure, they enable companies to stave off administration by gaining approval from landlords to take back loss-making...
According to Sky the process could involve the complete closure of the Chimichanga chain, which was reportedly suffering like-for-like sales declines of 6-7%.
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The company now has a workforce of 4,500. The number of jobs being cut is thought to be in the hundreds.
It is the latest of a string of High Street firms to run into difficulties.
It also plans to close the Tex-Mex chain Chimichanga, also owned by the company.
Analysts have said fears over the strength of the United Kingdom economy have meant consumers have cut back on discretionary spending.
The restaurant sector has also faced higher costs for the ingredients it buys overseas due to the drop in the pound since the United Kingdom voted to leave the European Union.