Pre-pack deal safeguards pizza jobs

Almost 100 jobs have been safeguarded after eight Pizza Hut branded franchise stores were sold through pre-pack sales in deals supported by Springfields Advisory.

Situl Raithatha of Leicester-based Springfields Advisory was appointed administrator of Sania (PH) Ltd on 28 April 2023 and of a connected company, Sania Ltd, on 18 May 2023. 

Eight Pizza Hut branded franchise stores were subsequently sold to unconnected parties with 90 jobs being saved across the companies. 

The sites sold were in Banbury, Bicester, Cheltenham, Marston, Nuneaton, Reading, Bridgend and Swansea.

The companies operated 15 sites across England and Wales. Administrators said the franchise businesses came under cash flow difficulties and, after exploring their options, accelerated sale processes were pursued in conjunction with the franchisor and other key stakeholders.  

However, it was not possible to save all stores resulting in 29 redundancies. The franchisor, Pizza Hut, will look to support affected employees and where possible assist with finding roles at other Pizza Hut or Yum! branded stores.

The closed sites are located in Cheltenham, Abingdon and Oxford. A further four restaurants operated by Sania (PH) had closed before the appointment of administrators.

Situl Raithatha, administrator, said: “The sale of the Sania businesses has delivered the best outcome for the various stakeholders. The businesses had expanded quickly and due to a combination of market conditions, level of finance costs and other factors, they came under significant financial difficulties.  We are pleased to have completed the sales, which have helped secure the future of a large proportion of the employees.” 

Nicolas Burquier, managing director, Pizza Hut UK & Europe, added: “We are grateful to Springfields Advisory for enabling the sale of eight of our franchise stores. Responding to an ever-shifting consumer landscape and to meet Pizza Hut’s growth ambitions in the UK, our business and operating models are evolving.

“As a result, there will be some changes across our UK franchise estate, particularly any with franchisees struggling to manage costs. We are confident in the ongoing success of one of Britain’s favourite businesses and we’re looking forward to sharing more details about our growth plans in due course.”

The announcement does not affect other Pizza Hut franchised stores and restaurants, which continue to operate as normal.