Pizza Hut hires advisers to explore insolvency agreement
Casual dining chain Pizza Hut has reportedly hired advisers to explore a potential insolvency agreement, which could involve significant job cuts.
Pizza Hut Restaurants has hired restructuring firm Alvarez & Marsal to weigh up a company voluntary arrangement (CVA), Sky News reported.
A final decision has not yet been taken but an insolvency agreement is reportedly a “distinct possibility”.
Pizza Hut has reopened the majority of its 244 sites, with 213 restaurants expected to be open by 10 August. The rest of its restaurants will open as soon as possible.
“Despite government support, and entering lockdown from a place of strength, the cost of lockdown combined with reduced trading levels has had a substantial impact on the whole restaurant sector,” a Pizza Hut spokesperson told Sky.
“Along with many other businesses, we are looking at ways to minimise that financial impact, while continuing to trade as usual.
“Whether this will require financial restructuring in the form of a CVA or otherwise is as yet undecided.”
Morning Wire has contacted Pizza Hut for comment.