Sky News reports that the 300-strong group, which owns the eponymous Italian chain and Mexican brand Chimichanga, could shut up to a third of its sites as part of a proposed restructure.
It comes after private equity firm TPG, which bought Prezzo for £304m in 2015, appointed consultants at AlixPartners to review its options last month.
Both TPG and Prezzo declined to comment when contacted by BigHospitality, but it is expected the CVA will be unveiled over the next few days.
According to Sky the process could involve the complete closure of the Chimichanga chain, which was reportedly suffering like-for-like sales declines of 6-7%.
Several hundred of the 4,500 jobs at Prezzo are likely to be impacted as a result of the restructure, though the company is understood to be aiming to redeploy staff at affected sites to other restaurants in its portfolio.
Last summer Prezzo put 27 restaurants up for sale, including eight Chimichanga sites, following poor trading.
According to research from Colliers International the company also saw its total business rates bill rise 23% to £15.9m over the last year, with increases of over 100% at some of its London restaurants.
It follows a difficult start to the year for several major casual dining brands on the high street. 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 sites after its CEO admitted the brand became "complacent" and failed to invest in its estate.
Prezzo opened its first restaurant in London in 2000 and has since expanded to every major city.