The owners of Pizza Hut today agreed to reduce branch rents as part of an insolvency process known as a voluntary corporate arrangement (CVA).
The deal means 215 Pizza Hut restaurants will continue to trade, saving 5,000 jobs. Today’s decision will not affect takeout.
Had a vote not been passed, the chain could have collapsed without additional funding – as a CVA can only be granted by the courts if a company can show it will face administration without the support.
A spokesperson for Pizza Hut Restaurants said, “We are delighted to have reached such a constructive position in partnership with our owners and creditors.
“We appreciate the support of everyone involved and this result provides us with a strong platform to secure the long-term future of the company, including over 5,000 jobs and over 200 restaurants.
“Our goal now is to support all of our team members and continue to provide our customers with a Covid risk-free dining experience.”
Pizza Hut is the latest restaurant chain to try to push back site closures, along with Pizza Express, Wahaca, Wasabi, Byron and Yo! Sushi all using the CVA process.
Retailers have also relied on the form of insolvency, notably New Look, which signed leases based on sales rather than a fixed amount.
Earlier this month, Pizza Hut said it presented the CVA’s proposals because “sales are not expected to fully rebound until 2021” despite a quick and safe reopening of the sites.
Rival Pizza Express confirmed this month that it will close 73 restaurants with 1,100 job losses after its own CVA contract was approved by creditors.
Full list of Pizza Hut stores that are expected to close following Monday’s CVA result:
- Basingstoke Commercial Park
- Brighton city center
- Bury St Edmunds
- Cambridge, rue Regent
- Cardiff, Culverhouse Cross
- Chelmsford, rue Moulsham
- Croydon, north end
- Glasgow, Great Western Retail Park
- Huddersfield, rue John William
- Leicester, Haymarket
- Londres, Leyton Mill
- Londres, Stratford
- Plymouth Royal Parade
- Sheffield, High Street
- Sheffield, chemin Penistone
- Thornton Cleveleys