Numerous Pizza Hut restaurants in the UK might close, and hundreds of jobs are at risk after the dine-in aspect of its business fell into administration.
Pizza Hut's UK restaurant division has announced it will close 68 locations after entering administration.
However, a recently agreed rescue deal will save 64 locations and secure the future of 1,277 employees.
As part of a pre-packaged administration, Pizza Hut UK declared the acquisition of the Pizza Hut dine-in operations.
A statement read: “We are pleased to secure the continuation of 64 locations to safeguard our guest experience and protect the associated jobs. Approximately 1,277 team members will transition to the new Yum! equity business under UK TUPE legislation, including above-restaurant leaders and support teams.
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Nicolas Burquier, managing director of international operating markets, stated: “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.”
More than 740 jobs are at risk as an additional 75 dine-in restaurants were not included in the last-minute rescue deal, according to The Business Desk. The applicant behind today's filing, Yum! III (UK) Limited, is a subsidiary of the American food outlet operator Yum! Brands, Inc, which holds a charge over the business.
Administration is the legal process where directors appoint an administrator to take control of the company and its assets in an attempt to save it. They have the authority to issue redundancies, but if saving the business isn’t feasible, they will attempt to return money to the creditors.
FTI was announced as the administrator of DC London Pie Limited, a franchisee of Pizza Hut.
This occurs less than a year after DC London Pie Limited purchased the chain’s restaurants from insolvency.
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