A MAJOR high street pizza chain could be sold just weeks after announcing 68 restaurant closures and collapsing into administration.
The potential sale comes after the chain’s American owner, Yum! Brands, which also owns KFC and Taco Bell, said it was reviewing its options following a period of weak performance.
The company recently stepped in to rescue its UK dine-in operations after their previous operator, DC London Pie, went into administration.
The deal saved 64 restaurants across Britain, but 68 are still set to shut.
Pizza Hut, the brand in question, has struggled with declining sales, particularly in the US, prompting Yum! Brands to take “action” and consider a possible sale.
Chief executive Chris Turner said in a statement: “The Pizza Hut team has been working hard to address business and category challenges; however, Pizza Hut’s performance indicates the need to take additional action to help the brand realise its full value, which may be better executed outside of Yum! Brands.
PIZZA SHUT
Pizza Hut to shut 68 UK restaurants after collapsing into administration
“To truly take advantage of the brand we’ve built and the opportunities ahead, we’ve made the decision to initiate a thorough review of strategic options.”
The possible sell-off marks a major moment for the much-loved pizza brand, which has been a fixture on the UK high street for decades.
Once a popular family dining spot, Pizza Hut has faced rising costs, changing consumer habits, and fierce competition from delivery-focused rivals such as Domino’s and Papa Johns.
Industry experts say the hospitality sector remains under pressure as customers cut back on dining out due to higher household bills.
Many casual dining chains have struggled to stay afloat, with closures continuing to hit the sector hard since the pandemic.
In recent months, several other well-known restaurant groups have also faced major difficulties.
Frankie & Benny’s and Chiquito, both owned by The Restaurant Group, have shut dozens of sites amid falling footfall.
Prezzo has also closed over 40 branches this year, blaming soaring energy bills and food costs.
Meanwhile, Bella Italia and Café Rouge, owned by the Big Table Group, have undergone restructuring in an effort to stay afloat.
The latest administration process saw dozens of Pizza Hut sites across England, Scotland, and Wales earmarked for closure, leading to hundreds of job losses.
The remaining restaurants continue to trade as normal while the review takes place.
Yum! Brands confirmed there was no deadline for the strategic review and no guarantee it would result in a sale.
However, analysts suggest the company could attract interest from private equity buyers or franchise operators looking to revive the brand’s performance in key markets.
FESTIVE FEELS
John Lewis reveals tear-jerker Xmas ad set to nostalgic 90s house track
TRAFFIC CARNAGE
Major motorway shut with TWO-HOUR delays after crash between lorry & van
Despite the uncertainty, Yum! said its other major fast-food businesses, KFC and Taco Bell, remain strong performers and helped to boost group sales in the latest quarter.
If the review results in a sale, it would mark another major shake-up for Britain’s struggling restaurant scene, and potentially signal the end of an era for one of the UK’s best-known pizza chains.
What does it mean when a company goes into administration?
WHEN a company enters into administration, all control is passed to an appointed administrator.
The administrator has to leverage the company’s assets and business to repay creditors any outstanding debts.
Once a company enters administration, a “moratorium” is put in place which means no legal action can be taken against it.
Administrators write to your creditors and Companies House to say they’ve been appointed.
They try to stop the company from being liquidated (closing down), and if it can’t it pays as much of a company’s debts from its remaining assets.
The administrator has eight weeks to write a statement explaining what they plan to do to move the business forward.
This must be sent to creditors, employees and Companies House and invite them to approve or amend the plans at a meeting.
A Notice of Intention is used to inform concerning parties that a company intends to enter administration.
It is a physical document which is submitted to court, usually by directors aiming to prevent a company from being liquidated.
Like with a standard administration process, a Notice of Intention stops creditors from taking out any legal action over a company while they try and rectify the business.
