A planned management buyout plan of Italian restaurant chain Prezzo has been scrapped as a result of the turmoil in the financial markets.
A team of directors made a preliminary approach seeking permission to explore a possible offer for the company in May this year.
However, Prezzo announced today that “due to current banking conditions” the discussions had been ended.
“The independent director of Prezzo has been informed that, due to current banking conditions, the participating directors have terminated discussions concerning a potential offer for the company,” Prezzo said in a statement.
“The company is not in discussions with any other party regarding a potential offer.”
Prezzo last month reported a 39% drop in first-half pre-tax profits to £2.9m despite a £8.9m rise in sales to £41.4m.
The company also warned that it had scaled back its new openings programme and earmarked several sites for disposal, as trading conditions on the UK’s high streets worsen.
Prezzo scales back on new openings >>
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By Kerstin Kühn
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