Pizza Hut CVA approved with 29 closures confirmed

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Pizza Hut's UK dine-in franchise business is to close 29 restaurants, putting 450 jobs at risk, after its Company Voluntary Arrangement (CVA) was approved by creditors this afternoon (28 September).

The closures will be spread across much of the UK, with branches in London, Brighton, Glasgow and Cardiff among those affected.

Another 215 UK Pizza Hut restaurants will keep trading, saving 5,000 jobs. 

The US-born casual dining brand previously said it had faced significant disruption across its estate.

Despite a quick, safe reopening following the Coronavirus lockdown, sales are not expected to fully bounce back until well into 2021.

The move will not affect operations or jobs at Pizza Hut Delivery - which is a separately-owned entity that trades from a further 380 outlets - or any of the brand's other franchises.

A Pizza Hut Restaurants spokesperson said: “The Company Voluntary Arrangement (CVA) for Pizza Hut Restaurants is now approved.

“We are delighted to have reached such a constructive position in partnership with our landlords and creditors. We appreciate the support of everyone involved and this outcome provides us with a strong platform to secure the long-term future of the business including over 5,000 jobs and over 200 restaurants.

"Our focus is now ‘business as usual’ supporting all of our team members and continuing to provide a Covid-safe restaurant experience for our guests.”

Founded in 1958 in Wichita, Kansas by Dan and Frank Carney, Pizza Hut opened its first UK restaurant in Islington in 1973.

The brand grew quickly in the late 80s 90s but the gradual unravelling of the relationship between joint partners Yum! and Whitbread in the late ’90s and early 2000s resulted in a chronic lack of investment and a corresponding decline in performance.

In 2012 Pizza Hut’s eat in arm was sold from Yum! to London-based turnaround investor Rutland Partners, with Yum! retaining the delivery side of the business.

The deal saw more investment in the brand and a number of refreshes and a move into delivery.