The private equity firm Carlyle has abandoned an attempt to seize control of the struggling restaurant chain Prezzo after a spat with its existing owner threatened to erupt into legal action.
Carlyle bought more than a third of Prezzo’s senior debt earlier this year with the aim of forcing through a debt-for-equity swap and installing its own boss at the pizza and pasta eatery.
Prezzo, owned by the private equity firm TPG Capital, is one of the casual dining chains that have carried out company voluntary arrangements (CVAs). The controversial tool allowed it to cut rents and close 94 restaurants.
