PizzaExpress prepares to serve up new slice of debt to investors

The parent company of PizzaExpress is hiring bankers to help it refinance a £335m bond ahead of its maturity, amid tough trading conditions for casual dining operators.

Sky News has learnt that Wheel Topco is close to appointing PJT Partners, the investment bank, to advise it on talks with its debtholders.

PizzaExpress trades from 359 sites in the UK and Ireland, and is one of Britain's most ubiquitous restaurant chains.

According to its latest accounts, its bond matures in July 2026, with negotiations expected to get underway with bondholders in the coming weeks.

News of PJT's imminent appointment comes a year after PizzaExpress explored a takeover bid for The Restaurant Group, which counts Wagamama as its main asset.

It decided against making a formal offer, citing "market conditions".

In 2020, a group of bondholders took control of PizzaExpress after a financial restructuring which saw them injecting £40m into the business.

They parachuted in Allan Leighton, one of Britain's most prominent businessman, as chairman, and named former Wagamama chief David Campbell as chief executive.

Mr Campbell has since left the company.

Last year, the company made a loss after tax of £7.5m, and said in filings at Companies House that it had "continued to experience strong macroeconomic headwinds" in the UK and Ireland.

A number of its rivals have also ben buffeted by difficult trading, with TGI Fridays recently being sold through a pre-pack administration to Breal Capital and Calveton, the owners of upmarket London restaurants such as Le Pont de la Tour and Coq d'Argent.

PizzaExpress declined to comment.