Pizza Express has hired financial advisers ahead of talks with creditors due to debt of up to £1.6 million per restaurant, it has been reported.
The food chain is reportedly preparing to engage with talks with creditors, as the MailOnline reported that Pizza Express was accumulating debt of £1.6 million per restaurant.
According to Bloomberg, Houlihan Lokey Inc has been appointed to assist in the talks between creditors and Pizza Express, which Chinese private equity firm Hony Capital acquired in 2014.
Pizza Express and Hony Capital has been approached for comment.
It comes after Langton Capital Ltd tweeted on Monday to say the firm is “reportedly about to engage in talks with creditors”, adding: “Last seen, had £1.6m of debt per restaurant.”
According to MailOnline, in the second quarter of the year Pizza Express’s earnings dropped by 11 per cent, while its debt rose 7.9 times before tax and earnings.
The newspaper reports that, at the end of December 2018, the company’s loans and borrowings came in at £1.13 billion.
Source: Evening Standard