Pizza Hut to Close 68 UK Restaurants, Putting Over 1,200 Jobs at Risk

UK Pizza Hut Shakeup: Dozens of restaurants belonging to the popular food chain Pizza Hut in the UK are set to close, putting the jobs of hundreds of employees at risk. The company's dine-in restaurant business has been placed under administrative control. On October 20, the company announced that Pizza Hut UK will close 68 restaurants and 11 delivery sites, resulting in the loss of approximately 1,210 jobs. This move comes after DC London Pie Limited, the company that operates these restaurants, placed itself under administrative control. The company has appointed FTI Consulting as administrator for this process.

Plan to Save 64 Restaurants

However, Yum! Brands, the global owner of Pizza Hut, has released some relief news. The company has agreed to save 64 restaurants, safeguarding the jobs of approximately 1,277 employees. Under this agreement, these restaurants will now become part of the new Yum! Equity business.

The company said, "We are pleased to maintain the continuity of 64 sites to improve our guest experience and ensure job security."

British Business Facing Financial Crisis

Pizza Hut is known for its family-friendly food and salad bars in the UK, but its business has been struggling for the past few years. It even went into administration about a year ago. DC London Pie Ltd. acquired Pizza Hut UK restaurants from bankruptcy in January this year. The company also operates Pizza Hut franchises in Sweden and Denmark.

Company Management Statement

Nicolas Berquier, Managing Director of Pizza Hut Europe and Canada, said, "Our aim is to improve our guest experience and save as many jobs as possible. Our priority at this time is to maintain operational continuity at the acquired locations and support our associates during the transition."

740 jobs still at risk

According to reports, more than 740 jobs are still at risk after more than 75 dine-in restaurants failed to participate in a last-minute rescue agreement. Administration is a legal process in which a company, with the approval of its directors, appoints an administrator to save the business and its assets. If saving the business is not possible, the administrator's role is to ensure repayment to creditors.