PizzaExpress is reportedly exploring a sale that could value the casual dining chain at up to £500 million. The company's owners, including Bain Capital's special situations unit and Cyrus Capital Partners, are collaborating with bankers at Rothschild to facilitate this potential transaction.
This news comes amidst ongoing financial considerations for PizzaExpress. In January 2025, shareholders, specifically Cyrus Capital Partners and Bain Capital, were considering an equity injection of approximately £40 million to £50 million to support an amend-and-extend of the company's £335 million bonds due in 2026. This was seen as a viable option given the challenging macroeconomic environment and the bonds yielding 21.6%.
PizzaExpress has faced persistent headwinds, including high energy costs, inflation, and sluggish consumer confidence, which have impacted operational performance since the pandemic. In the third quarter ending September 29, revenue was down 3.9% year-over-year to £110.1 million, and post-IFRS 16 EBITDA declined 11.7% year-over-year to £21.1 million. The company's wages and salaries constitute a significant portion of its cost base, amounting to about £161.5 million, or 35.5% of sales in fiscal year 2024. The combined impact of rising employer national insurance and minimum wage increases is expected to further strain cost structures for UK businesses, particularly those with slim profit margins like PizzaExpress.
Despite these challenges, an October 2025 report by Octus indicated that under their base case, the group's debt appeared to be covered, and an amend-and-extend of its senior secured notes (SSNs) was the most viable option. However, any such agreement would likely require a coupon uplift, adding further pressure on cash generation. Fitch has affirmed PizzaExpress at 'CCC+', and S&P Global Ratings previously affirmed its ratings on a completed refinancing.
