A RESTAURANT in Hereford's Old Market is at risk of closure.
Tasty, the firm behind the Wildwood chain, has revealed plans to shut a raft of sites as part of a major restructuring.
It said it plans to exit around 20 loss-making restaurants after a “challenging” start to the year.
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The restructuring plan would see the group shut 18 of the the Italian restaurants, with two of the sites already closed to customers.
It has not disclosed the locations of the sites earmarked for closure.
Tasty currently has 43 Wildwood restaurants in operation, six Dim-T pan-Asian restaurants, two non-trading sites and three sub-let venues.
Its Hereford restaurant is in the Old Market, next to Zizzi along Newmarket Street.
On Tuesday, the hospitality group said its financial performance “continues to be inhibited by a tail of underperforming sites, despite efforts at improving operational performance”.
The company added: “The use of a restructuring plan is considered the most effective means to reorganise the group to return it to profitability and secure its long-term future which should change the financial viability, profitability profile and long-term prospects of the group.”
It will also enter into a new £750,000 loan agreement with Bet365 shareholder Will Roseff in order to fund the restructuring.
Tasty’s bosses said they expect the plan will improve earnings by up to £2.1 million by the 2025 financial year, particularly through the restaurant closures and other cost savings.
The group said it expects to operate around 30 restaurants by the end of the current year.
The proposals are to be circulated to Tasty’s creditors before a court hearing expected later this month.
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