PIZZA Hut’s UK restaurants have gone into administration today, putting 68 dine-in branches and hundreds of jobs at risk, The Sun can reveal.
Pizza Hut’s UK restaurant owner, DC London Pie Limited, appointed FTI Consulting as administrators on Monday.
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Pizza Hut UK’s takeaway branches are unaffected by the collapse of the restaurant chainCredit: Getty
Within minutes, Pizza Hut‘s global owner Yum! Brands swooped in with a deal to save 64 dine-in restaurants.
But 68 restaurants – and 1,723 jobs – are still at risk because they weren’t part of the rescue deal.
Pizza Hut UK’s takeaway and delivery branches are unaffected by the collapse of the restaurant chain.
A spokesperson for the pizza chain told The Sun: “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.
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“We are pleased to secure the continuation of 64 sites to safeguard our guest experience and protect the associated jobs.”
“Approximately 2,259 team members will transfer to the new Yum! equity business, including above-restaurant leaders and support teams.”
Directional Capital took over Pizza Hut’s UK restaurants in January 2025, using a pre-pack administration deal and creating DC London Pie Limited to manage the business.
The previous owner, Heart with Smart Limited, had collapsed, leaving almost £40million in debt to investor Pricoa Capital.
But last month, HMRC issued a winding-up petition against DC London Pie Limited.
This happens when a company owes more than £750 in unpaid tax and ignores all attempts to settle the debt – meaning it could be forced to close and sell its assets to pay what it owes.
What does it mean when a company goes into administration?
WHEN a company enters into administration, all control is passed to an appointed administrator.
The administrator has to leverage the company’s assets and business to repay creditors any outstanding debts.
Once a company enters administration, a “moratorium” is put in place which means no legal action can be taken against it.
Administrators write to your creditors and Companies House to say they’ve been appointed.
They try to stop the company from being liquidated (closing down), and if it can’t it pays as much of a company’s debts from its remaining assets.
The administrator has eight weeks to write a statement explaining what they plan to do to move the business forward.
This must be sent to creditors, employees and Companies House and invite them to approve or amend the plans at a meeting.
A Notice of Intention is used to inform concerning parties that a company intends to enter administration.
It is a physical document which is submitted to court, usually by directors aiming to prevent a company from being liquidated.
Like with a standard administration process, a Notice of Intention stops creditors from taking out any legal action over a company while they try and rectify the business.
Pizza Hut first arrived in the UK in 1973 and quickly became a favourite with diners.
At its height, the chain operated over 260 restaurants nationwide, employing 10,000 staff and welcoming three million customers each month.
Some of its most notable creations include the introduction of the pan pizza in 1980, the stuffed crust in 1995, and the re-launch of the pan pizza as the grand pan in 1998.
Pan pizzas are baked in a deep, oil-coated dish, giving the crust a deliciously crispy, golden edge and a lightly fried texture on the bottom.
Like many businesses, Pizza Hut faced challenges during the coronavirus pandemic.
To manage its financial difficulties, the company entered into a Company Voluntary Arrangement (CVA) – a deal with lenders to cut costs and stay afloat.
At the time, Pizza Hut had over 240 locations across the UK but was forced to close 29 branches as part of the restructuring plan.
What are my rights if I’m made redundant?
YOU are entitled to statutory redundancy pay if you have worked for your employer for two years or more.
The statutory rate is based on your age, weekly pay and number of years in the job.
You will get:
- Half a week’s pay for each full year you worked aged under 22
- One week’s pay for each full year you worked aged 22 or older, but under 41
- One and half week’s pay for each full year you worked while aged 41 or older.
You cannot be paid less than the statutory amount.
If you were made redundant on or after April 6 2025, your weekly pay is capped at £719 and the maximum statutory redundancy pay you can get is £21,570.
The government has a calculator on its website to help you work out how much you are owed.
You may get more than this statutory amount if your employer has a redundancy scheme.
HOSPITALITY WOES
The hospitality sector has struggled to bounce back after the pandemic, facing challenges including soaring energy bills, inflation and staff shortages.
In January 2023, Byron Burger fell into administration with owners saying it would result in the loss of over 200 jobs.
Around 12 branches were saved in a rescue deal with Tristar Foods, which is owned by Calveton.
The Restaurant Group (TRG), which owned Frankie & Benny’s, Chiquito and Wagamama, shut dozens of sites in the same year.
It then went on to sell its Frankie & Bennys and Chiquito brands to Cafe Rouge owner The Big Table group in September 2023.
Italian restaurant chain Prezzo also closed dozens of sites in the same year.
In April 2024, Tasty, the owners of Italian restaurant Wildwood and Dim T, a pan-Asian restaurant, announced plans to exit 20 loss-making restaurants.
In the same month, Whitbread revealed plans to slash its chain of branded restaurants across the UK.
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Meanwhile, TGI Fridays was forced to close 35 locations immediately after falling into administration last October.
However, 51 restaurants were rescued through a last-minute pre-pack deal with private equity firms Breal Capital and Calveton UK.
