Deal saves Pizza Hut but 29 restaurants to close with 450 jobs at risk
Pizza Hut Restaurants has struck a restructuring deal with creditors, a move which saves the retail chain but will see the closure of almost 30 sites putting 450 jobs at risk.
Proposals to close 29 under-performing restaurants and cuts to rent bills across its remaining estate of over 200 sites were agreed in a vote by creditors including landlords. Only one North West site, Thornton Cleveleys, is directly affected by the closures.
They agreed to slash rents on branches as part of an insolvency process known as a Company Voluntary Arrangement (CVA).
The deal means 215 Pizza Hut restaurants will keep trading, saving 5,000 jobs. The move will not affect takeaways.
If a vote had not passed, the chain could have collapsed without extra funding.
A Pizza Hut Restaurants statement said: “We are delighted to have reached such a constructive position in partnership with our landlords and creditors.
“We appreciate the support of everyone involved and this outcome provides us with a strong platform to secure the long-term future of the business including over 5,000 jobs and over 200 restaurants.
“Our focus is now business as usual supporting all of our team members and continuing to provide a Covid-safe restaurant experience for our guests.”
Pizza Hut has become the latest in a long line of chains forced to take drastic steps as the pandemic’s longer-term impact on city centre footfall and consumers’ discretionary spend are expected to intensify problems for restaurateurs.
Ask Italian, Bella Italia, Byron, Cafe Rouge, Carluccio’s, Chiquito, and Frankie and Benny’s are among the chains to shut restaurants or restructure their business recently.
Full list of Pizza Hut closures
Cambridge (Regent St)
Leicester Haymarket
Grantham
Huddersfield
Glasgow (Great Western retail park)
Cumbernauld
Plymouth
Maidenhead (Grenfell Island)
Oxford (George Street)
Dunstable (White Lion retail park)
Bury St Edmunds
Chelmsford (Moulsham St)
Leyton Mill, London E10
Scarborough
Worcester
Stafford
Newcastle-under-Lyme
Thornton Cleveleys
Sheffield (Penistone Rd)
Sheffield (High St)
Croydon (North End)
Maidstone (King St)
Gravesend (Imperial Park)
Salisbury
Basingstoke
Brighton (city centre)
Weston-super-Mare
Cardiff (Culverhouse Cross)
Stratford, London E15
