Pizza Hut’s Appointment of Administrators Marks New Setback for Hospitality Sector
The recent announcement regarding Pizza Hut’s appointment of administrators has raised significant concerns within the hospitality sector. Following a rescue deal less than a year ago, the UK operator of Pizza Hut restaurants, DC London Pie Limited, has entered administration.
Key Developments in Pizza Hut’s Administration
Pizza Hut UK has confirmed its acquisition of the dine-in operations through a pre-packaged administration. FTI has been appointed as administrators for DC London Pie Limited, which operates numerous Pizza Hut dine-in restaurants.
Impact on Employment and Operations
- 64 sites successfully secured to maintain guest experiences.
- Approximately 2,259 employees will transition to the new Yum! equity business.
- Jobs include above-restaurant leaders and support teams.
Nicolas Burquier, Managing Director of Pizza Hut Europe and Canada, emphasized the importance of safeguarding guest experiences and protecting jobs. He stated that the immediate goal is to ensure operational continuity at the newly acquired locations.
Challenges Ahead for Remaining Outlets
Despite the rescue of certain locations, 75 dine-in restaurants are not included in the deal, placing 741 jobs at risk. This decision comes shortly after HMRC filed a winding-up petition against the business.
Background and Financial Context
The filing party, Yum! III (UK) Limited, is a subsidiary of Yum! Brands, Inc., headquartered in Louisville, Kentucky. The company has secured a financial interest in the operations.
- Directional Capital purchased 139 Pizza Hut locations in a pre-pack deal last year.
- This previous acquisition preserved approximately 3,000 jobs.
- Pizza Hut UK’s former owner, Heart with Smart Limited, reportedly owed nearly £40 million to Pricoa Capital.
It is worth noting that operations managed by DC Pie in Sweden and Denmark remain unaffected by this administration process. As the situation develops, further updates will be provided regarding the impacts on the hospitality sector.
