Future hangs in the balance for Northampton restaurant as 1,110 pizza chain jobs at risk

The town will learn the fate of Pizza Express in Derngate after a company voluntary arrangement (CVA) – an insolvency process which allows it to exit stores and slash rents – is launched in the 'near future'.

Today (Tuesday), Pizza Express has confirmed plans to shut 15 per cent of its 449 UK restaurants as part of an overhaul of its finances that puts up to 1,100 jobs at risk.

In October last year, Pizza Express was reportedly in crisis talks with creditors after accumulating £1.6 million of debt per restaurant.

Bosses said the pandemic has had a 'profound effect' on the hospitality sector and say the move is regretable but action is needed to reduce the groups' external debt, from £735 million to £319 million.

It is hoped against the 'current backdrop' that reducing the size of its estate will help it to protect 9,000 jobs as 166 restaurants are now back open as the Eat Out to Help Out initiative starts and plans for further re-openings are underway.

Should the proposals go ahead the chain, which started in Soho in 1965, will look for "redeployment opportunities both internally and externally" for those employees impacted, and also offer outplacement support.

In 2018, Rushden Lakes welcomed a new 196-seater Pizza Express restaurant open their doors at the multi-million pound development in March 2018, creating 25 jobs for the area.