In a significant blow to Britain's hospitality sector, Pizza Hut has confirmed plans to shutter dozens of its restaurants across the UK, putting hundreds of jobs at risk.
The CVA Restructuring Plan
The popular pizza chain is implementing a Company Voluntary Arrangement (CVA), a form of insolvency procedure that allows struggling businesses to continue trading while restructuring their operations. This move will see approximately 29 Pizza Hut restaurants close their doors permanently, while the remaining 215 locations will continue operating.
Impact on Jobs and Locations
The restructuring is expected to affect around 450 positions within the company. While some staff may be redeployed to other locations, many face redundancy as the chain streamlines its operations amid challenging market conditions.
Confirmed Closure Locations Include:
- Various sites across England, Scotland, and Wales
- Multiple locations in city centres and suburban areas
- Restaurants identified as underperforming or no longer financially viable
Industry Challenges
The decision comes during an exceptionally difficult period for the UK's restaurant industry, which has been battered by the COVID-19 pandemic, rising operational costs, and changing consumer habits. Many casual dining chains have been forced to reassess their property portfolios and business models to survive.
Future of the Brand
Despite the closures, Pizza Hut remains committed to the UK market. The company emphasised that the restructuring will strengthen the remaining estate and position the business for future growth. A spokesperson stated that the difficult decision was necessary to ensure the long-term viability of the popular pizza chain in Britain.
The closures are expected to be completed in the coming months, with the company working to support affected employees through the transition period.
