Only a yr after being saved in a rescue deal, a big franchisee of Pizza Hut has entered administration.
Pizza Hut is best known for its family-friendly casual dining style, in addition to being a number to countless children’s parties.
Now, TheBusinessDesk has reported that a franchisee of the beloved pizza chain has appointed administrators.
Last yr, 139 restaurants and three,000 jobs within the UK were saved when Directional Capital purchased the flailing branches.
Now, 75 dine-in restaurants and 741 jobs operated by DC London Pie, Ltd, are in danger, as they weren’t a part of the last-minute rescue deal.
Nicolas Burquier, Managing Director International Operating Markets, said: ‘This targeted acquisition goals to safeguard our guest experience and protect jobs where possible. Our immediate priority is operational continuity on the acquired locations and supporting colleagues through the transition.’
In a press release, Pizza Hut said: ‘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.
‘We’re pleased to secure the continuation of 64 sites to safeguard our guest experience and protect the associated jobs.
‘Roughly 2,259 team members will transfer to the brand new Yum! equity business, including above-restaurant leaders and support teams.’
Which means the takeaway locations aren’t affected – only the dine-in locations.
What does falling into administration mean?
When a firm goes into administration, it’s a legal process wherein an administrator is appointed by the administrators, a creditor or the court. They take control of the corporate and every thing it owns.
The administrator (a licensed insolvency practitioner) will first attempt to save lots of the business. Additionally they have the ability to make any employees redundant.
If saving it isn’t possible, they may attempt to claw back as much money as possible for creditors without immediately winding it up.
In line with the federal government’s Corporations House, this might involve allowing the corporate to proceed to trade for a period, while in search of to sell the business or assets, akin to:
- content or web sites.
- goodwill
- trademarks
- patents
- equipment
- the shopper database
- software
If neither of the above options works, they will liquidate the corporate.
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