One of Wolverhampton’s oldest Italian restaurants is to re-open featuring three bars, an outdoor terrace and VIP booths, it was announced today.

Pepitos, which closed in May after a possession notice appeared in its window, has been bought by the people who run Don Salvo in Darlington Street.

Builders were moving into the School Street restaurant today to start on its £50,000 transformation into Primo.

The new bar and grill will have a capacity of 250 people and create a new jobs, but staff from Don Salvo will also work there. Around 20 people will be required to cover the weekend shifts.

Primo will open on October 31 with a VIP evening the night before.

Spokesman Stuart Ojelay said: “We felt this was the right time to launch what people will hopefully feel is the most exciting nightlife project in our city for an age.”

Pepitos was established 40 years ago by Emilia Catellani, who came to Wolverhampton from Milan as a student. In January 2008, the firm controlling Pepitos folded with huge debts. St Judes Wolverhampton Ltd went into voluntary liquidation owing almost £340,000.

It changed its name from Pepitos Ltd in 2007 shortly after at least one county court judgement was made against it for unpaid bills.