Prezzo facing £70m in liabilities

In reports published by The Times, the Italian chain owes £32m to the closed sites’ landlords, while HM Revenue & Customs are owed just under £10m worth of unpaid bills covering PAYE, national insurance contributions and VAT.  

To deal with these issues, Prezzo has entered a formal restructuring process, with a letter to creditors seen by The Times saying the purpose of this plan being to “restore the group to financial stability, adding that if it was unable to pay its debts then it would “likely enter administration. 

The restructuring plan was reportedly deemed necessary due to a lack of available funds from the group’s current creditors and its inability to raise finance from third party lenders.