Jobs at risk at Pizza Hut
By Sarah Wood | 30th July 2020
Pizza Hut is the latest restaurant chain to hire advisers to look into the possibility of an insolvency agreement, which could mean significant job losses.
Pizza Hut Restaurants, which has a branch in Gloucester, has instructed professional services firm Alvarez & Marsal to consider the merits of a company voluntary arrangement (CVA), as reported by Sky.
While a final decision has yet to be taken, it's thought that a CVA is a real possibility for the chain. It is unclear how many restaurants or jobs could be at risk from a restructuring process.
Pizza Hut traded from 244 restaurants in the UK before the covid-19 crisis, most of which have reopened. The plan is to open the remaining restaurants as soon as possible.
The company said the cost of lockdown and reduced trading had had a substantial impact and it needs to find a way to reduce it.
Pizza Hut is the latest restaurant chain to be hit by the coronavirus pandemic, with Pizza Express expected to close 75 restaurants, and Cafe Rouge, Carluccio's and Bella Italia all going into administration.
Restaurant bosses have largely welcomed the government's Eat Out to Help Out scheme to bring trade back to the sector in August. But there is still concern about the long-term survival of many restaurant chains, due to reduced consumer confidence and continued social distancing measures.
Pizza Hut Restaurants is a separate business from the brand's delivery business, which trades from 380 sites across the UK.
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