Italian restaurant chain, Prezzo, becomes the latest to hire consultants amid the coronavirus pandemic.
FRP Advisory are reported to have been appointed to explore post-coronavirus funding options and the implications left on its balance sheet.
It has not even been two years since the chain had to axe dozens of outlets by a financial restructuring which included a debt-for-equity swap. This left 180 restaurants for the chain to trade from, all being profitable before the coronavirus hit.
The majority of its 3,000 employees have been furloughed by the Coronavirus Job Retention Scheme.
A spokeswoman for Prezzo said: ‘’We entered this entirely unexpected closure after a period of strong trading, which has given us the impetus and momentum to be able to drive through to reopening.’’
With the uncertainty the hospitality industry faces in the UK, the appointment of advisors seems sensible as a precautionary measure. By doing this the best advice can be on hand as the chain responds to the pandemic and start to think about future plans in terms of reopening.
Since Covid-19 hit, numerous restaurant chains including Wahaca and Byron’s Burgers have called in advisors to help restructure their finances. Additional to this, Carluccio’s and Chiquito’s have fallen into administration. Le Pain Quotidien are looking to complete a sale next week by form of a pre-pack insolvency process.