Pizza Hut Restaurants revealed it is currently negotiating a CVA in order to “mitigate the financial impact of Covid-19”.
It said PHR is “one of many hospitality brands” that has faced “significant disruption” and despite a quick, Covid-safe reopening, it predicts sales are not expected to fully bounce back until well into 2021.
A Pizza Hut Restaurants spokesperson said: “We are committed to doing the right thing, and in order to secure as many jobs as possible and continue serving our communities, we are working to reach an agreement with our creditors. While we are likely to see 29 Hut closures and 450 job losses, any measures we take aim to protect about 5,000 jobs at our remaining 215 restaurants, as well as the longevity of the business.
“We understand this is a difficult time for everyone involved. We appreciate the support of our business partners and are doing everything we can to help our team members during this process, including speaking with those affected by the consultation.”
They added: “This does not affect locations, jobs or operations at Pizza Hut Delivery, any of Pizza Hut Delivery’s other franchises or any international Pizza Hut or Yum! operations. As a group, we look forward to creating a future where we continue sharing pizza with our communities.”
Last month, it was revealed rival chain Pizza Express had formally launched a CVA in a bid to reduce its restaurant estate and rental cost base following the pandemic.
The CVA proposal will see the permanent closure of 73 restaurants, resulting in a loss of 1,100 jobs.