The BBC has reported that Pizza Express has hired financial advisers ahead of a meeting to review its debt.
Large debts are becoming a recurring theme for the failure of retail and food outlets on the high street. Following the fall of Thomas Cook could this be the next chain to disappear?
For more information see Are our high streets disappearing?
The 470-store chain made losses for the last two years as its operating profits were more than offset by high interest payments on its £1.1bn debt pile. Most off-putting of all, of course, is the enormous debt number. The interest on that £1.1bn is costing the company £93m a year, which wiped out all its operating profit last year - and then some. In fact, the debt payments have pushed Pizza Express into the red for the last two years with a loss of £55m last year alone.
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