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Pizza Hut is just one of the many eateries that has suffered the consequences of the coronavirus. It announced plans to close 29 restaurants at the start of September which saw 450 jobs put at risk.
The chain was today saved from administration after landlords agreed to reduce rents on restaurant branches.
Pizza Hut had improved sales prior to the coronavirus outbreak, after a long period of under-performance.
Despite this, the chain had to turn to restructuring the business in order to cut costs.
The company resorted to a Company Voluntary Agreement (CVA) in a bid to reduce its annual rent which was more than £20million.
The CVA was voted through today and will result in the closure of 29 of Pizza Hut’s 244 restaurants, with 450 jobs at risk.
The deal will see 5,000 jobs saved across its remaining restaurants.
If the vote had not passed, Pizza Hut restaurants would have been on the brink of collapse.
A Pizza Hut Restaurants spokesperson said: “The Company Voluntary Arrangement (CVA) for Pizza Hut Restaurants, (PHR – the UK dine-in franchise business of the global Pizza Hut brand), is now approved.
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“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.”
Pizza Hut Restaurants is the main franchisee of the Pizza Hut brand in the UK, and is a separate company to the Pizza Hut UK business which focuses on deliveries.
The move will not affect operations or jobs at Pizza Hut Delivery or related franchises.
Full list of Pizza Hut restaurants closing:
– Basingstoke Retail Park
– Brighton City Centre
– Bury St Edmunds
– Cambridge, Regent Street
– Cardiff, Culverhouse Cross
– Chelmsford, Moulsham Street
– Croydon, North End
– Glasgow, Great Western Retail Park
– Huddersfield, John William Street
– Leicester, Haymarket
– London, Leyton Mill
– London, Stratford
– Plymouth Royal Parade
– Sheffield, High Street
– Sheffield, Penistone Road
– Thornton Cleveleys
Pizza Hut is just one of the high-street food chains facing the effects from the pandemic.
Pizza Express, Wahaca, Wasabi, Byron and Yo! Sushi are all amongst those using the CVA process to help try and save their sites.
Rival chain Pizza Express announced earlier this month that 73 restaurants were set to close with 1,000 job loses as its own CVA deal was approved.
Although Pizza Express said it had been making profit before coronavirus struck, earnings had been declining for the past three years.
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