The nationwide chain is set to unveil plans to close a third of its United Kingdom restaurants, putting hundreds of jobs at risk, according to Mirror Online.
The Company Voluntary Arrangement (CVA) is to be released in the coming days, and will involve negotiations with landlords over rent.
The Italian high street restaurant chain is planning to close 100 restaurants, Sky News is reporting this morning.
Prezzo employs more than 4,500 staff and hundreds of jobs are expected to be lost as it vacates sites.
AlixPartners, the advisory firm, is overseeing the CVA.
The method was also used by Toys R Us in December, which collapsed into administration this week.
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Retailers and casual dining chains have been hit hard by a combination of rising costs such as the National Living Wage and Apprenticeship Levy, and the inexorable shift towards online shopping and meal delivery services.
It it yet to be confirmed which Prezzo restaurants will be affected by the closures.
Prezzo has been run by Jon Hendry Pickup, a former Travelodge executive, since 2016.
Around a third of Prezzo restaurants could be set to close as its parent company orders a restructuring, it has been reported..
About 100 unprofitable outlets are likely to close altogether, including all branches of its Tex-Mex offshoot, Chimichanga, in an attempt to put the business on a sound long-term financial footing.
Prezzo did not comment or deny the plans when contacted by The Lincolnite.