The former boss of Pizza Express Hugh Osmond has scrapped plans to buy back the business in a potential £250 million deal.

The 41-year-old, part of the team that floated the restaurant chain nine years ago, has walked away after failing to agree terms.

Shares in Pizza Express tumbled 14 per cent as Mr Osmond's financial advisers ING Bank said discussions had been terminated.

Mr Osmond shared a £26 million fortune with then partner Luke Johnson after floating the business in 1993. Both then left the group to pursue other deals.