Town set to lose Pizza Hut as creditors agree to CVA
- Credit: Archant
A Pizza Hut in Bury St Edmunds is earmarked for closure after the group secured agreement to save it from collapse.
The chain’s landlords agreed to cut rents on its restaurants after voting through an insolvency process known as a Company Voluntary Arrangement (CVA), the company has confirmed.
But the deal means 29 of its restaurants across the UK will shut, putting 450 jobs at risk. A further 215 outlets will continue trading though, keeping 5,000 jobs afloat.
Takeaways are not affected.
MORE – Coronavirus curfew takes hard toll on East’s high streetsWithout the vote in favour, the chain could have collapsed without receiving extra funding. The chain also has outlets in Ipswich, Colchester and Clacton-on-Sea which are not affected.
A Pizza Hut Restaurants spokesman 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.
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“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.
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“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 follows in a long line of restaurant chains to attempt to push through site closures, with Pizza Express, Wahaca, Wasabi, Byron and Yo! Sushi all using the CVA process.
Retailers including New Look have also relied on a CVA to keep going.
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.
Rival Pizza Express confirmed this month that it will shut 73 restaurants with 1,100 job losses after a CVA deal was approved by creditors.