Investors in Prezzo, the c300-strong operator of its eponymous brand and Mexican chain Chimichanga, have yet to sign off on its plan for a Company Voluntary Arrangement, MCA understands.

The CVA is still expected to launch within days, including a plan to close around a third of Prezzo’s c300 estate.

The closures will include the entirety of the 33-strong Chimichanga estate, as Prezzo focuses on its core estate.

MCA understands the group is already working to strengthen the Prezzo brand, including trialling a new design in 12 restaurants of varying categories across its estate. It is also working on a step-change in its food and drink offer.

The group put 27 sites on the market last summer, saying they were not trading in line with expectations, however only 11 have sold so far. Last month it was suggested that Prezzo was suffering like-for-like sales declines of about 6 to 7% for Chimichanga.

Under the terms of a CVA Prezzo will need the approval of 75% of creditors.

In January we pinpointed analysis of the core Prezzo brand through MCA’s authoritative Eating Out panel, which offered little cause for comfort. Its NPS scores were trailing the wider chain restaurants market in December 2016 and the gap has only widened over the past year.

In October, there were reports that TPG was preparing the loss-making business for a possible sale, with the Casual Dining Group, the private equity-backed owner of Bella Italia, Las Iguanas and Café Rouge, tipped as a potential suitor. However, CDG have denied this.

Prezzo was founded by the Kaye family in 2000 and grew to 250 sites before being acquired by TPG Capital for £304m in January 2015. TPG Capital partner Dirk Eller, acted as interim chief executive until Jon Hendry-Pickup, formerly of Tesco, was appointed 18 months later.