Pizza Hut will close 68 UK restaurants after the company operating its dine-in venues fell into administration. DC London Pie, which runs the chain's UK restaurants, appointed administrators from corporate finance firm FTI on Monday.
The company has not disclosed how many workers will be affected by the restaurant closures. The administration comes less than a year after the business had bought the chain's restaurants from insolvency.
Rescue deal saves majority
American hospitality giant Yum! Brands, which owns the global Pizza Hut business, has bought back the UK restaurant operation through a pre-pack administration deal. The rescue agreement will save 64 sites and secure jobs for 1,277 workers.
Nicolas Burquier, managing director of Pizza Hut Europe and Canada, 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."
Recent ownership changes
The administration follows a turbulent period for the UK operation. DC London Pie was formed earlier this year when Directional Capital, which operated franchises in Sweden and Denmark, acquired 139 UK restaurants from previous franchisee Heart with Smart Limited in January.
The current crisis emerged around six weeks ago when a subsidiary of Yum filed a winding up petition against DC London Pie. This legal action preceded Monday's administration appointment.
Sources used: "PA Media" Note: This article has been edited with the help of Artificial Intelligence.
