Azzurri Group to close 75 outlets, cut over 1,000 jobs following pre-pack sale
Pod will also become a delivery-only brand.
The operator of the Zizzi, ASK Italian and Coco di Mama restaurant brands has been sold in a pre-pack administration deal to London-based international investment management firm TowerBrook Capital Partners.
In a company update, Azzurri Group said TowerBrook has committed £70 million to restructure the balance sheet and provide capacity for future growth.
Citing challenges brought about by the COVID-19 pandemic, around 75 of its sites will no longer reopen whilst Pod, which the group acquired last year, will turn into a delivery-only brand. The move expects to impact up to 1,200 jobs across the group.
Azzurri said it will now begin to implement plans to reopen an initial 40 ASK Italian and Zizzi restaurants, shortly followed by more restaurants and Coco di Mama sites later this summer.
The group was advised by KPMG and Travers Smith LLP. Sidley Austin provided legal advice to
TowerBrook, whilst PJT Partners and CMD Global Partners acted as their financial advisers.
Alvarez & Marsal and Boston Consulting Group also provided additional guidance.
“Despite being a successful operator, the immediate loss of revenue during lockdown meant that we have had to make some incredibly difficult decisions to protect the business for the long term. It is with deep sadness that this process will result in the permanent closure of a number of sites and that we must say goodbye to greatly valued employees across our brands,” Azzurri Group CEO Steve Holmes said.
“Looking forwards, TowerBrook is a strong new partner who shares our ambitions for the future. Their additional investment has enabled us to preserve the majority of our restaurants, stores and jobs and I am confident that, under TowerBrook’s ownership, Azzurri will navigate the period ahead successfully,” he added.
