Pizza Hut Faces Major Setback as Dozens of Restaurants Close Amid Administration Troubles
Dozens of Pizza Hut restaurants across the UK are facing closure as the company enters administration. This move has raised concerns about the future of hundreds of employees.
Pizza Hut’s Administration Impact
Pizza Hut UK has announced the closure of 68 venues following its administration proceedings. This situation brings significant changes to its operations.
Job Losses and Rescue Plan
While 68 locations will shut down, a rescue plan will save 64 restaurants, ensuring the jobs of approximately 1,277 employees. A pre-packaged administration process facilitated this acquisition, allowing continuity in guest service.
- 68 Pizza Hut locations closed
- 64 restaurants saved in the rescue deal
- 1,277 jobs secured
Nicolas Burquier, the managing director of international operating markets, stated, “This targeted acquisition aims to safeguard our guest experience and protect jobs where possible.” He emphasized the focus on maintaining operations and supporting staff during the transition.
Future of Remaining Locations
However, over 740 jobs remain at risk as 75 additional dine-in restaurants were not included in the rescue deal. This news follows a recent acquisition of the restaurants from insolvency, which was executed less than a year ago by DC London Pie Limited.
About the Administration Process
Administration is a legal procedure wherein directors appoint an administrator to oversee the company’s assets and operations. Their goal is to attempt to save the business while also satisfying creditors, if possible.
The administrators for Pizza Hut’s UK operations, FTI, now manage the transition. They aim to stabilize the situation following the significant changes in the management structure.
Background of the Parent Company
Yum! III (UK) Limited, a subsidiary of Yum! Brands, Inc., is behind the filing for administration. This company, based in Louisville, Kentucky, oversees numerous fast-food establishments worldwide.
- Yum! Brands operates 19,866 restaurants globally as of 2023.
- As the parent company, Yum! Brands holds a charge over the Pizza Hut UK business.
As the situation develops, the future of Pizza Hut in the UK remains uncertain, with ongoing efforts to protect jobs and restore operations. Emegypt will continue to monitor these events closely.
