Pizza Hut Restaurants has won a bid to secure its future and 5,000 jobs though 450 roles remain under threat.
The company, which comprises only the dine-in restaurant franchise in the UK, announced earlier this month that it was seeking an insolvency mechanism known as a Company Voluntary Arrangement (CVA) to slash costs as it moved to recover from the effects of the coronavirus lockdown.
Proposals to close 29 under-performing restaurants and cuts to rent bills across its remaining estate of 200 sites were agreed in a vote by creditors including landlords.
Image: Pizza Hut takeaways are not part of the Restaurants business which is focused on dine-in franchises
Where jobs have been lost in the UK economy
The chain could have potentially collapsed without the support as the wider dining sector – while boosted by the Eat Out to Help Out scheme during August – fights for survival amid continuing COVID-19 curbs.
Rival Pizza Express secured a CVA earlier this month that left more than 1,000 jobs hanging in the balance.
A Pizza Hut Restaurants spokesperson said: “The CVA for Pizza Hut Restaurants 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 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.”