Pizza Hut restaurants collapse into administration as future uncertain for dozens of branches

Pizza Hut is facing the potential closure of up to 68 restaurants, putting hundreds of jobs in jeopardy as the chain enters administration. DC London Pie Limited, the UK owner of the restaurant, appointed FTI Consulting as administrators on Monday due to escalating financial difficulties.

However, a last-minute rescue deal was struck by Pizza Hut's global parent company Yum!

Brands, which also owns KFC and Taco Bell, saving a portion of the operation.

The agreement ensures the survival of 64 dine-in restaurants, safeguarding approximately 2,259 jobs that will now be transferred to a new Yum! equity business. The future of the remaining 68 sites, however, remains uncertain, reports the Express.

A representative for the pizza chain stated: "Today we announce the acquisition of the Pizza Hut dine-in operations through a pre-packaged administration, after FTI was announced today as administrators of DC London Pie Limited, a franchisee of Pizza Hut dine-in restaurants.

"We are pleased to secure the continuation of 64 sites to safeguard our guest experience and protect the associated jobs."

The administration does not affect Pizza Hut's delivery and takeaway branches, which will continue to operate as usual.

This follows weeks of financial pressure for DC London Pie Limited, which was served with a winding-up petition from HMRC last month over unpaid tax liabilities, a legal action typically taken when a business owes more than £750 and fails to settle or negotiate payment.