Pizza Express could close around 67 of its UK restaurants putting up to 1,100 jobs at risk as a result.
The chain said on Tuesday it is planning to launch a company voluntary arrangement (CVA) in the “near future” in a bid to push down its rents.
This comes amid a “significantly more challenging environment” following the coronavirus pandemic and UK-wide lockdown, which closed restaurants for weeks.
The business stressed that the final outcome of the restructuring has “yet to be decided”, but it may end in the closure of around 15 per cent of its 449 restaurants in the UK, which would impact 1,100 staff.
The restaurant chain also said it had put itself up for sale after bringing in experts – the sale will be run independently to the closure plans.
UK and Ireland managing director Zoe Bowley said: “While the financial restructuring is a positive step forward, at the same time we have had to make some really tough decisions.
“As a result, it is with a heavy heart that we expect to permanently close a proportion of our restaurants, losing valued team members in the process.
“This is incredibly sad for our Pizza Express family and we will do everything we can to support our teams at this time.
“As we continue to reopen our restaurants for dine-in and delivery, we will successfully navigate the extended period of social distancing expected in the months ahead and, in so doing, protect 9,000 jobs.
“The initial signs from the restaurants that have been reopened have been very encouraging and we hope that our loyal customers continue to support us now more than ever.”
The nationwide dining chain closed all restaurants following the 23 March government lockdown. It recently reopened a number of restaurants for delivery and takeaway service.
In November 2019 Pizza Express in Woking had to suspend Trip Advisor reviews after users flooded it with joke reviews following Prince Andrew’s BBC Newsnight appearance.
During the interview, the royal denied allegations he was with 17-year-old Virginia Roberts, explaining he was at the Woking chain at the time of the alleged encounter, at a birthday party with his daughter Princess Beatrice.
