A restaurant chain that operates in Tayside and Fife has been saved from potential collapse after landlords agreed to take rent cuts.
Pizza Hut’s company voluntary arrangement (CVA) has been accepted by its creditors in a move that will see 29 restaurants close, putting 450 jobs at risk.
Landlords and creditors voted in favour of the CVA, which will see them take a cut on future bills to keep the company from going bust.
The list of sites to close do not include the Pizza Huts at Kingsway West Retail Park in Dundee or Fife Leisure Scheme in Dunfermline.
Those restaurants, along with 213 others, will continue to trade, saving around 5,000 jobs. Takeaway branches are not affected.
If a vote had not passed, the chain could have collapsed without extra funding – 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: “The company voluntary arrangement (CVA) for Pizza Hut Restaurants, (PHR – the UK dine-in franchise business of the global Pizza Hut brand), 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 5000 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.”
Pizza Hut is the latest restaurant chain to attempt to push through site closures, with Pizza Express, Wahaca, Wasabi, Byron and Yo! Sushi all using the CVA process.
Retailers have also relied on the form of insolvency, including New Look, which has signed rental agreements based on sales, rather than a fixed amount.
Earlier this month, Pizza Hut said it put forward the CVA proposals as “sales are not expected to fully bounce back until well into 2021” despite a quick and safe reopening of sites.
