CAFE chain Pret a Manger is set to close as many as 45 of its UK high street stores in a move that would put up to 800 jobs at risk, it has been reported.
Pret has been struggling during the coronavirus lockdown with the company already confirming that it’s been losing “tens of millions of pounds each month”.
Pano Christou, the cafe chain’s chief executive, will make an announcement on the future of the stores this Wednesday, June 8, according to The Mail on Sunday.
The newspaper reports how the move is set to impact almost one in ten of Pret’s 434 UK branches, as well as up to 800 of its 8,000 employees.
A Pret spokesman told The Mail on Sunday: “We will update our team members in early July once the plan has been finalised.”
The Sun has asked Pret for more information and we’ll update this article when we hear back.
Businesses in turmoil in 2019 and 2020
PRET A Manger is the latest in a long list of businesses to be facing trouble. In 2019 and so far in 2020 we’ve seen:
- Go Outdoors enter into administration putting 2,400 jobs at risk
- Jamie Oliver’s “Jamie’s Italian“chain go bust, alongside his Fifteen and Barbecoa restaurants
- Links of London go into administration putting 350 jobs at risk
- Marks and Spencer close 35 more stores as it pushes forward with plans to axe 145 shops across the UK
- Dozens of Monsoon and Accessorize stores close
- Struggling shoe shop Office has said it “could close shops” as part of restructuring plans
- Fears Pizza Express could be next to go into administration as it “brings in emergency advisers”
- Hairdressing chain Supercutswent into administration in October 2019 – putting 1,200 jobs and 220 salons at risk
- Maternity and baby retailer Mothercare collapsed into administration in November 2019 after 58 years on the high street, putting 2,500 jobs at risk
- Department store chain Bealeswent into administration in January 2020 with 23 shops and 1,052 jobs at risk
- High end fashion brand Ted Baker said it plans to axe 160 jobs in February 2020
- Mobile phone retailer Carphone Warehousesaid in March 2020 that it’ll close all 531 standalone stores in April
- Vintage furnishing and fashion firm Cath Kidston said it was closing all 60 high street stores in March 2020
- Fashion store Animal said in April 2020 it was closing all 21 of its UK stores
- Department store chain Debenhams fell into administration for the second time in April 2020
- P&O Ferries said in May 2020 that it was looking at making 1,100 workers redundant
- TUI warned in May 2020 that 8,000 jobs could be cut due to the ongoing coronavirus crisis
- British Airways said in May 2020 that it still plans on pressing ahead with 12,000 job cuts
- Oasis and Warehouse went into administration in May 2020, with 1,800 staff placed on furlough
- Shoe chain Aldo collapsed into administration in June 2020 with five stores permanently closed
- Victoria’s Secrets plunged into administration in June 2020, putting 800 jobs at risk
- Fashion chain Quiz put its shop business into administration in June 2020, putting 82 stores at risk
The majority of Pret’s shops are placed near offices and airports, meaning a large chunk sales usually comes from workers and travellers.
Revenue is understood to have taken a hit as thousands of people have worked from home since March to help stop the spread of Covid-19.
Last month, Pret was reported to have seen sales drop to £3million, just 15 per cent of what they would usually be, according to a leaked video seen by the BBC.
As a result, the chain was reportedly only able to pay a third of its rent after offering landlords only a small portion of what it owes them.
A spokesperson at the time confirmed to The Sun that the business has been “massively affected” by coronavirus and said it wouldn’t be able to pay its June rent bill in full.
The spokesperson continued: “Despite reopening most of our shops, we are losing tens of millions of pounds each month and are not in a position to pay our June quarter rent in full.
“We are working with our landlords to find the best way forward.”
The warning over its rent payment came just days after Mr Christou warned Pret is currently in “the eye of the storm” with fears growing that the chain won’t break even until September.
In a letter to landlords seen by the Financial Times, he said: “We feel strongly that the Pret brand has every reason to believe it will thrive again, but we are currently in the eye of the storm.”
Pret initially closed all UK branches back in March when the government ordered all non-essential stores to shut up shop.
So far, it has reopened 320 of its stores for takeaway and delivery – customers can now also dine-in in some of its larger sites.
The pandemic is causing chaos on the UK high street, with the Centre for Retail Research predicting that 20,000 shops could close for good this year.
This could in turn result in 235,000 job losses in the retail sector.
We’ve got a full round-up of all the shops and restaurants that have gone bust here.