Dozens of Pizza Hut restaurants in the UK could close and hundreds of jobs are at risk after the dine-in side of its business collapsed into administration.
Pizza Hut’s UK restaurant business has said it will shut 68 venues after falling into administration. The rescue deal will save 64 sites and secure the future of 1,277 workers.
As part of a pre-packaged administration, Pizza Hut UK announced the acquisition of the Pizza Hut dine-in operations.
A statement read: “We are pleased to secure the continuation of 64 sites to safeguard our guest experience and protect the associated jobs. Approximately 1,277 team members will transfer to the new Yum! equity business under UK TUPE legislation, including above-restaurant leaders and support teams.
Nicolas Burquier, managing director international operating markets, said: “This targeted acquisition aims to safeguard our guest experience and protect jobs where possible. Our immediate priority is operational continuity at the acquired locations and supporting colleagues through the transition.”
Over 740 jobs are at risk as a further 75 dine-in restaurants were not part of the last minute rescue deal, according to The Business Desk. The applicant behind today’s filing, Yum! III (UK) Limited, is a subsidiary of American food outlet operator Yum! Brands, Inc of Louisville, Kentucky, which holds a charge over the business.
Administration is the legal process where directors appoint an administrator to take control of the company and everything it owns in an attempt to save it. They have the power to issue redundancies, but if saving the business isn’t possible, they will try to return money to the creditors.
FTI was announced as the administrators of DC London Pie Limited, a franchisee of Pizza Hut.
It comes less than a year after DC London Pie Limited had bought the chain’s restaurants from insolvency.
The chain, headquartered in Texas, operates 19,866 restaurants worldwide as of 2023.
