City's Pizza Hut to close despite rescue deal - The Worcester Observer

City's Pizza Hut to close despite rescue deal

Worcester Editorial 28th Sep, 2020   0

WORCESTER’S Pizza Hut is among 29 sites across the UK which will close for good despite the fast food giant reaching a deal with its creditors to save more than 5,000 jobs.

The Shrub Hill Retail Park is among those which will be axed despite Pizza Hut’s landlords agreeing to a restructure plan to save the company from going bust.

Landlords agreed to cut rents on branches as part of an insolvency process known as a Company Voluntary Arrangement (CVA).

It wasn’t enough to save the city’s Hut which has been under threat since the ailing fast food giant bosses revealed the company’s plight earlier this month. The deal means 215 Pizza Hut restaurants will keep trading, saving 5,000 jobs.

If a vote had not passed, the chain could have collapsed without extra funding – as a CVA can only be granted by the courts if a company can show it will face administration without the support.

A Pizza Hut Restaurants spokesperson said: “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.”


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