Pizza Hut considering CVA

30-Jul-2020 - Last updated on 26-Apr-2021 at 16:37 GMT

Related tags Pizza hut CVA Casual dining Pizza

Sky News is reporting that Pizza Hut is considering a CVA and has appointed professional services firm Alvarez & Marsal to explore a restructuring of the business.

The US-born casual dining brand has nearly 250 UK locations and 213 of them are expected to be trading again by 10 August.

Sky News’ sources said that a final decision had yet to be taken by the chain but that a CVA was “a distinct possibility”.

The pandemic has already resulted in a number of other major casual dining brands being forced to restructure their business by way of a CVA (Credit Voluntary Agreement) including PizzaExpress.

Pizza Hut Restaurants is a separately owned entity to the brand’s UK delivery arm, which trades from a further 380 outlets.

Founded in 1958 in Wichita, Kansas by Dan and Frank Carney, Pizza Hut opened its first UK restaurant in Islington in 1973.

The brand grew quickly in the late 80s 90s but the gradual unravelling of the relationship between joint partners Yum! and Whitbread in the late ’90s and early 2000s resulted in a chronic lack of investment and a corresponding decline in performance.

In 2012 Pizza Hut’s eat in arm was sold from Yum! to London-based turnaround investor Rutland Partners, with Yum! retaining the delivery side of the business.

The deal has seen more investment in the brand and a number of refreshes and a move into delivery.