Pizza Hut is to close 68 restaurants and 11 delivery sites, leading to the loss of more than 1,200 jobs after the company behind its UK sites was placed into administration.
The company said 1,210 workers would be laid off as part of the closures.
DC London Pie, the company that runs Pizza Hut restaurants in the UK, on Monday appointed administrators to corporate finance company FTI.
This comes less than a year after the company purchased the bankrupt chain’s restaurants.
On Monday, American hotel giant Yum! Brands, owner of the global Pizza Hut business, said it has bought the British restaurant business in a pre-packaged administration deal – a rescue deal that will save 64 sites and secure the future of 1,276 workers.
A Pizza Hut UK spokesperson confirmed that Yum! agreement and declared accordingly that it was “pleased to ensure the maintenance of 64 sites to safeguard our customer experience and protect associated jobs.
“Under UK TUPE legislation, approximately 2,259 team members will transfer to the new Yum! Equity business, including managers above restaurants and support teams.”
Nicolas Burquier, chief executive of Pizza Hut Europe and Canada, called Monday’s deal a “targeted acquisition” that, he said, “aims to preserve the customer experience and protect jobs wherever possible.”
“Our immediate priority is operational continuity at acquired sites and support for colleagues throughout the transition. »
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The administration came after HMRC filed a liquidation petition against DC London Pie on Friday.
DC London Pie is the company created after Directional Capital, which operated franchises in Sweden and Denmark, bought 139 UK restaurants from former UK franchisee Heart with Smart Limited in January this year.