Pizza Hut in the UK is set to shutter 68 of its restaurants along with 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 stated that the acquisition of Pizza Hut dine-in operations has been secured through a pre-packaged administration. This move ensures the continuation of 64 sites to maintain guest experience and safeguard associated jobs. Under UK TUPE legislation, approximately 1,277 team members, including above-restaurant leaders and support teams, will transfer to the new Yum! equity business.
Nicolas Burquier, Managing Director of Pizza Hut Europe and Canada, emphasized that the targeted acquisition is aimed at preserving the guest experience and protecting jobs where feasible. The immediate focus is on ensuring operational continuity at the acquired locations and assisting colleagues through the transition.
Directional Capital took control of 139 Pizza Hut restaurants in January 2025, saving 3,000 jobs after the collapse of the previous operator, Heart with Smart Limited. DC London Pie was established by Directional Capital to manage Pizza Hut restaurants in the UK. The first Pizza Hut in the UK opened in 1973 in Islington, London, and at its peak, the chain operated over 260 restaurants nationwide with 10,000 employees.
This closure announcement by Pizza Hut adds to a series of struggling businesses that have recently declared closures. Poundland has closed numerous stores following a significant business restructure after being acquired for £1 by an investment firm. Bodycare, a struggling beauty chain, shut down all its stores last month after entering administration. Initially, 32 stores were closed immediately, followed by the confirmation of the permanent closure of another 30 stores. The remaining 56 stores were also announced to close permanently.