Pizza Express to close 67 branches in a CVA debt restructuring deal
The popular chain said it plans to launch a company voluntary arrangement (CVA) in the “near future” in a bid to push down its rents and clear some of its £1 billion of debt.
The restructuring arrangement will save the company from bankruptcy but could see the closure of 15% of 449 restaurants and the loss of 1100 jobs. A spokesperson said the final outcome of the restructuring has “yet to be decided”.
Landlords take hit
Pension funds and companies like Legal and General will be hit directly (affecting pension policyholders) and indirectly through their shareholdings in companies like Land Securities.
Many landlords will have no choice but to bite the bullet and accept a lower rent or sit on an empty property.
We have already seen one large retail landlord go into administration and I’m sure many more will follow.
I’m hearing similar stories in other countries which either have no safety net (or even temporary furlough schemes, which are coming to an end, e.g. in America).
I would expect to see more tenants unable to pay their rents and borrower unable to keep up payments on their mortgage. This will lead to millions of bank repossessions, as well as years of untold misery and poverty.
Banks have already set aside billions for expected bad debts. HSBC, which announced 35,000 job cuts, has set aside £13 billion for bad debt.
In this pandemic-driven recession. very few people hold a ‘get out of jail card’.
- Manchester declares a state of ‘major incident’ after Covid rise
- Major employers ignore government ‘back to work’ advisory
- HSBC to shed 35,000 jobs after 63% drop in profits and bad loans
- London theatreland in darkness as 5,000 related jobs are lost
- Half as many jobs are being advertised compared to last year
- Eat out to help out launches in bid to boost restaurant trade
- UK property prices jumped by 3% since June after stamp duty cut
- Will end of furlough see millions more unemployed this autumn?
- Unemployment could reach 10% and recession last until 2024
- Staycations boom as UK hotels fill up, always check your travel insurance
- Why UK Property prices rising after stamp duty cut, despite the downturn?
- New planning rules will open up more opportunities to make money in property
- You don’t need your own money to create a second income in property
- You can create a second income during the lockdown…and come out stronger
- Learn how to make money from property without deposits, mortgages or cash
Millions of people face a bleak future post-Coronavirus lockdown, as businesses disappear and the job furlough scheme eventually comes to an end. However, life doesn’t have to end because of lockdown! You can join thousands of ordinary people who have increased their income and added streams of new income during this period.
Are you ready to adapt to the new economic model?
As lockdown restrictions around the world are being eased, the economic model has subtly changed forever. How will you adapt to this new way of working and running a business, what obstacles and opportunities lies ahead? Will you be a participant or spectator in this revolution?
By Charles Kelly, Property Investor, Author of Yes, Money Can Buy You Happiness and creator of Money Tips Podcast.
There are more examples and practical steps to getting rich and being happy in my book, Yes, money can buy happiness, I cover the 3 R’s of Money Management, the Money B.E.L.I.E.F System and much more. Check it out on Amazon http://bit.ly/2MoneyBook.
If you’d like further information on how to survive the crisis and even quit the rat race, email me at Charles@CharlesKelly.net or send me a message through Facebook or my Money Tips Daily community. See more articles at www.moneytipsdaily.com