A MEXICAN restaurant will shut down after the company that owns it ran into financial trouble.

Chimichanga in George Lane, South Woodford, will shut in April or May.

It is one of 94 restaurants run by Prezzo to close.

Prezzo branches in South Woodford, Chingford, Epping and Buckhurst Hill are unaffected.

The restaurant chain confirmed redundancies are part of the bailout package, although efforts will be made to move staff from affected branches to others.

The company’s creditors approved a company voluntary arrangement (CVA) which will run for two years. Under the proposal, 57 Prezzo restaurants will benefit from rent reductions ranging between 25 per cent and 50 per cent.

Jon Hendry-Pickup, CEO of Prezzo, says: “I would like to thank our creditors and landlords for supporting our transformation plan. While we continue to be profitable, the pressures on our industry have been well documented.

“Despite this being a tough decision, the support given today by our creditors shows that they believe we have the right approach to transforming Prezzo in the eyes of teams, customers and stakeholders.

“It has been a challenging time during the CVA process and I would like to thank our suppliers, colleagues and customers for their patience and support.”