Almost 70 UK Pizza Huts to close as Yum agrees partial rescue

(Sharecast News) - Pizza Hut's UK dine-in business entered administration on Monday, with 68 restaurants set to close and more than 700 jobs at risk, following years of pressure on the casual dining sector. The move came as part of a pre-packaged administration process that would see 64 of the company's restaurants acquired by Yum! III (UK) Limited, a subsidiary of the chain's US-based parent company, Yum! Brands.

It would secure the future of around 1,277 employees, who would transfer to the new ownership under UK employment protection rules, the Independent reported.

Administrators from FTI Consulting were appointed to oversee the process for DC London Pie, a Pizza Hut franchisee that only took over the dine-in business less than a year ago after its previous insolvency.

The newly-appointed administrators said the acquisition aimed to maintain operations at the surviving sites and support staff during the transition.

Around 75 restaurants were excluded from the rescue deal, placing a further 740 jobs in jeopardy.

Nicolas Burquier, managing director for international operating markets at Yum! Brands, said the transaction was designed to "safeguard our guest experience and protect jobs where possible," adding that the group's immediate priority was maintaining operational continuity.

Reporting by Josh White for Sharecast.com.