Pizza Hut’s UK franchisee nears rescue deal
It is understood that the deal could be officially struck as early as tomorrow (15 January) through a pre-pack administration of Heart With Smart (HWS)
Pizza Hut’s biggest UK franchisee, Directional Capital, is reportedly close to finalising a rescue deal later this week, according to Sky News.
Directional Capital, which already controls a majority of Pizza Hut’s dine-in operations in Denmark and Sweden, would save the jobs of some 3,000 employees and acquire about 140 sites across the UK.
It is understood that the deal could be officially struck as early as tomorrow (15 January) through a pre-pack administration of Heart With Smart (HWS), the main UK franchise-holder.
Interpath Advisory, who has been overseeing the sale process of HWS, told Sky that an insolvency of the corporate entity would not lead to “substantial” numbers of site closures or job losses.
If completed, the deal would bring to an end a sale process which has been ongoing since Rachel Reeves’ autumn budget.
HWS, which was previously called Pizza Hut Restaurants, is owned by a lender, Pricoa, and the company’s management – led by CEO Jens Hofma.
While HWS operates all of Pizza Hut’s dine-in restaurants in Britain, it has no involvement with its numerous delivery outlets which are run by individual franchisees.
However, Directional Capital reportedly owns two of Pizza Hut’s UK delivery franchisees.
