Pizza Hut to shut 68 sites after collapsing into administration

Published: 21 October 2025. The English Chronicle Desk. The English Chronicle Online.

Pizza Hut is set to close dozens of its UK restaurants after its owner, DC London Pie, collapsed into administration, marking another major blow to the country’s struggling casual dining sector. As many as 68 Pizza Hut restaurants are at risk of closure following the company’s financial collapse, which has left hundreds of jobs hanging in the balance.

Administrators from FTI Consulting confirmed they had reached a partial rescue agreement with Yum! Brands, the global owner of the Pizza Hut brand. Under the deal, Yum! Brands has agreed to buy 64 of the UK restaurants—roughly half of the country’s total sites—saving 1,276 jobs. However, the remaining restaurants face an uncertain future, with hundreds of employees still at risk of redundancy.

Nicolas Burquier, managing director for Pizza Hut Europe and Canada, said the agreement aimed to “protect jobs where possible” and ensure stability for the rescued outlets. “Our immediate priority is operational continuity at the acquired locations and supporting colleagues through the transition,” he said.

The collapse comes only months after DC London Pie purchased the UK arm of Pizza Hut out of administration, in a deal that was initially hailed as a lifeline for the chain. Backed by U.S. private equity firm Directional Capital, DC London Pie also operates Pizza Hut franchises in Sweden. At the time of the acquisition, former Pizza Hut UK chief executive Jens Hofma expressed optimism, declaring that “the future of the business has been secured with a strong platform in place.”

But the optimism was short-lived. The company continued to face mounting financial pressures, including high operating costs, rising wages, and a sharp decline in consumer spending. Analysts say the pizza sector has been particularly hard hit, as inflation-weary customers cut back on dining out. According to data from Meaningful Vision, pizza chains were the only fast-food category to record a drop in new store openings in the first half of 2025.

The warning signs had been apparent for weeks. Just six weeks ago, a subsidiary of Yum! Brands filed a winding-up petition against DC London Pie, indicating that relations between the two companies had soured. Industry insiders suggest that the financial challenges proved too steep for the relatively new ownership group to overcome.

Under DC London Pie’s leadership, Pizza Hut had attempted to modernise its operations and restore profitability through digital ordering and limited menu revamps. In September, the company appointed Gino Casciani, a veteran of Yum! Brands, as its new chief executive, is describing the move as a “pivotal moment” for the business. However, Casciani’s arrival was not enough to stave off financial collapse.

The crisis echoes earlier struggles under Pizza Hut’s previous owner, Heart With Smart, which collapsed while owing more than £50 million. The chain’s troubles reflect broader challenges across the UK hospitality sector, where rising energy bills, rent costs, and labour shortages have forced numerous closures and restructurings over the past two years.

Despite the grim news, a spokesperson for Pizza Hut UK said there was still hope for parts of the business: “We are pleased to secure the continuation of operations for a number of our restaurants. Our focus remains on our people and customers as we navigate this difficult transition.”

For now, many employees and customers are left waiting for clarity about the fate of their local Pizza Hut branches, as Britain’s restaurant industry braces for yet another wave of closures.