PizzaExpress is heading for a takeover by its lenders as early as this month in a debt-for-equity swap with Chinese owner Hony Capital that is also likely to involve closing some of its high street restaurants hard hit in the pandemic.

Investors in the ￡465m of senior secured bonds that back the company are in advanced talks over a restructuring deal, according to two people familiar with the discussions. These are likely to result in control of the UK business being handed to the debt holders, they said. 

The terms of the deal are still being discussed, with Hony potentially taking ownership of the Chinese operations as a result of the restructuring. This would leave the larger UK business in the hands of its bondholders. The chain has about 450 restaurants in the UK and roughly 600 globally.