Italian restaurant chain Prezzo will close up to 100 of its 300 branches across the country, according to an announcement made earlier today.
It has been reported that the Prezzo-owned Tex-Mex chain Chimichanga (with more than 30 outlets) will close down entirely.
Hundreds of jobs could be at risk as a result of the closures.
The news comes on the same day as high street brands Toys R Us and Maplin fell into administration.
Prezzo serve Italian food in a casual dining setting (Photo: Shutterstock)
Prezzo (owned by the private equity firm TPG Capital) is said to be preparing to launch a Company Voluntary Arrangement (CVA) in the coming days.
A CVA allows a company with debt or insolvency problems to reach a voluntary agreement with its business creditors regarding repayment of all or part of its corporate debts over an agreed period of time.
In this case, Prezzo could enter negotiations with landlords to secure rent reductions at many of their remaining restaurants.