Pizza Hut's UK operations has fallen into administration with 68 dine-in restaurants to close down for good in another blow to Britain's high streets.
It is understood this move from the business could result in as many as 741 job losses.
DC London Pie, the parent company running Pizza Hut’s UK dine-in restaurants, appointed administrators from corporate finance firm FTI earlier today.
This morning, American hospitality giant Yum! Brands, which owns the global Pizza Hut business, said it has now bought the UK restaurant operation in a pre-pack administration deal.
Pizza Hut is set to close 68 restaurants
|GETTY
A spokesperson for the restaurant chain 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 are pleased to secure the continuation of 64 sites to safeguard our guest experience and protect the associated jobs.
"Approximately 2,259 team members will transfer to the new Yum! equity business, including above-restaurant leaders and support teams."
Nicolas Burquier, the managing director International Operating Markets, told GB News: "This targeted acquisition aims to safeguard our guest experience and protect jobs where possible.
The high street has been hit with store closures in recent months. | PA"Our immediate priority is operational continuity at the acquired locations and supporting colleagues through the transition."
The restaurant chain's previous owner, Heart with Smart Limited, collapsed last year which resulted in the firm leaving nearly £40million in debt to investor Pricopa Capital.
In January 2025, Directional Capital took over the Pizza Hut's UK restaurants in January 2025 as part of a pre-pack administration deal.
DC London Pie Limited was created to manage the brand's British operations.
Reacting to the news, Isabelle Shepherd, a partner at HaysMac, said: "This news highlights the continued challenges hospitality businesses face due to falling consumer demand.
"Budget uncertainty has prompted falls in spending, causing falling sales for many restaurant chains.
"The pizza market is particularly competitive with many new entrants taking market share, which has reduced demand for some of the more established brands who may be seen as less exciting.
“The increases in national insurance and the national living wage in April have compounded liquidity and cost issues."
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Pizza lovers will be devastated by the news
| GB NEWS"Hospitality businesses are suffering from the twin pressures of reduced sales and significantly increased labour costs, squeezing cashflows and working capital. Sadly, these pressures are too high for many to bear, including some beloved household names."
According to research conducted by the Centre of Retail Research, as many as 17,000 shops are projected close throughout 2025.
In October 2025 alone, major retailers and banks will be leaving the high street for good, including Poundland, Halifax and New Look.
Businesses cite the hike business costs, shifts in shopping habits to online, increased competition, and higher taxes are all combining to create one of the toughest retail climates the economy has seen.
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