Pizza Hut restructuring vote secures 5,000 jobs

Pizza Hut Restaurants has won a bid to secure its future and 5,000 jobs though 450 roles remain under threat.

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Pizza Hut and rivals in the casual dining sector are still facing curbs on trading because of the coronavirus crisis

The company, which comprises only the dine-in restaurant franchise in the UK, announced earlier this month that it was seeking an insolvency mechanism known as a Company Voluntary Arrangement (CVA) to slash costs as it moved to recover from the effects of the coronavirus lockdown.

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Pizza Hut takeaways are not part of the Restaurants business which is focused on dine-in franchises

Proposals to close 29 under-performing restaurants and cuts to rent bills across its remaining estate of 200 sites were agreed in a vote by creditors including landlords.

The chain could have potentially collapsed without the support as the wider dining sector – while boosted by the Eat Out to Help Out scheme during August – fights for survival amid continuing COVID-19 curbs.

Rival Pizza Express secured a CVA earlier this month that left more than 1,000 jobs hanging in the balance.

A Pizza Hut Restaurants spokesperson said: “The 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.”