Pizza Hut in the UK is preparing to shut down 68 of its restaurants and 11 delivery sites, resulting in the loss of 1,210 jobs. DC London Pie Limited, a franchisee of Pizza Hut dine-in restaurants, has appointed FTI Consulting as administrators. Yum! Brands, the global owner of Pizza Hut, has agreed to rescue 64 locations and 1,277 jobs through a pre-pack administration deal.
A pre-pack administration involves finalizing the sale of a business or its assets before the administration process commences. A spokesperson for Pizza Hut UK announced the acquisition of the Pizza Hut dine-in operations through a pre-packaged administration. This move aims to secure the continuity of 64 sites, ensuring the guest experience and safeguarding associated jobs. Approximately 1,277 team members will transition to the new Yum! equity business under UK TUPE legislation, including leaders and support staff.
Nicolas Burquier, Managing Director of Pizza Hut Europe and Canada, emphasized that the targeted acquisition is focused on maintaining the guest experience and preserving jobs where feasible. The immediate priority is ensuring operational continuity at the acquired locations and supporting colleagues during the transition.
In January 2025, Directional Capital took control of 139 Pizza Hut restaurants, saving 3,000 jobs after the previous operator, Heart with Smart Limited, collapsed with significant debts to investor Pricoa Capital. DC London Pie was established by Directional Capital to operate Pizza Hut outlets in the UK. The first Pizza Hut in the UK opened in Islington, London, in 1973, eventually expanding to over 260 restaurants nationwide with 10,000 employees.
The closure of Pizza Hut locations is part of a trend of struggling businesses announcing shutdowns in recent months. Poundland, for example, has closed numerous stores following a business restructure after being acquired by an investment firm for £1. Additionally, Bodycare closed all its stores after falling into administration, initially shutting 32 stores and later confirming the permanent closure of another 30 outlets. The remaining 56 stores are also set to close permanently.