Seven Pizza Hut brand franchise stores have been acquired through pre-pack sales supported by Springfields Advisory.
Leicester-based Situl Raithatha of Springfields Advisory was appointed administrator of PH Leicester Ltd, PH Leicester 1 Ltd and PH Crawley Ltd on 7 September 2023.
Immediately following their appointment, seven franchise stores under the Pizza Hut brand were sold through pre-packaged sales to independent parties.
The companies operated sites in the Midlands and Sussex. Franchise businesses experienced cash flow difficulties and, after exploring their options, expedited sales processes were pursued in collaboration with the franchisor and other key stakeholders. It seems that the buyers plan to reopen the sites.
The newly acquired stores include three in Leicester, two in Crawley and one each in Loughborough and Tamworth.
The franchisor, Pizza Hut, will seek to support affected employees and, where possible, help them find positions with other Pizza Huts or Yum! branded sites.
Nicolas Burquier, Managing Director of Pizza Hut UK & Europe, said: “We are grateful to Springfields Advisory for enabling the sale of these franchise stores.
“In response to an ever-changing consumer landscape, our business and operating models are evolving. We remain confident and committed to our vision of being the number one choice in pizza; for consumers to order our pizza, employees choose to be a part of it. our business and to be the partner of choice for franchisees.”
This announcement does not affect other Pizza Hut franchise stores and restaurants, which continue to operate as normal.
Situl Raithatha added: “Under these circumstances, the sale of the stores yielded the best outcome for the various stakeholders. Companies have been affected by market conditions, the level of financial costs and other factors which have led to significant financial difficulties.
“We are pleased to have finalized these transfers which have ensured the sustainability of the sites.”
Springfields Advisory was advised by Zoe Oates and Elizabeth McPhail on restructuring and insolvency at Schofield Sweeney.
Earlier this year, Raithatha sold eight franchise stores of the Pizza Hut brand following his appointment as a director of Sania (PH) and an associated company, Sania Ltd.