Private equity firm TPG - which bought Prezzo for £304m in 2015 - has appointed consultants at specialist turnaround firm Alix Partners to consider the group’s options.
TPG declined to comment when contacted by BigHospitality, but The Sunday Times reports that restructuring plans could lead to closures across the chain’s 300-strong restaurant estate.
It follows a difficult start to the year for the casual dining sector, with a raft of closures expected in high streets around the country as restaurants struggle with rising costs, business rates and staff shortages.
Strada shut more than a third of its 26 sites over the festive period blaming an ‘increasingly competitive market’, while Jamie’s Italian is preparing to close 12 restaurants as part of a strategic review of the business.
Creditors at Byron are set to vote on a restructuring plan on 31 January which could also see the closure of 20 sites.
Other operators are trialling new formats in response to the hostile industry climate.
Bill’s has revamped three sites in London and St Albans to ‘test drive’ small plates and sharing dishes designed for family dining, while Wahaca and Wagamama both launched 'Test Kitchen' sites late last year.
Prezzo opened its first restaurant in London in 2000, and has since expanded to every major UK city.