Pizza Hut announces plans to close 29 of its restaurants putting 450 jobs at risk

It said it is negotiating a company voluntary arrangement (CVA) restructuring deal after it faced “significant disruption” from the pandemic.

It has branches in Boldon, Hartlepool Marina, Durham City Retail Park, Teesside Park, one in the Metrocentre and another in its neighbouring retail park and The Gate in Newcastle.

The Pizza Hut Restaurants group said it has put forward the proposals as “sales are not expected to fully bounce back until well into 2021” despite a quick and safe reopening of sites.

The measures aim to protect about 5,000 jobs across its remaining restaurants as well as the “longevity” of the business, it said, with its delivery or related franchises to be unaffected by the decision.

It has become the latest in a raft of restaurant chains to announce closures and job losses following the pandemic.

Rival Pizza Express confirmed on Monday that it will shut 73 restaurants with 1,100 job losses after its own CVA deal was approved by creditors.

Branches it plans to shut include one in Dalton Park, in Murton, as it looks to cut 1,100 jobs from its workforce and restructures its business.

A spokeswoman said: “We are committed to doing the right thing and, in order to secure as many jobs as possible and continue serving our communities, we are working to reach an agreement with our creditors.

“We understand this is a difficult time for everyone involved.

“While we are likely to see 29 Hut closures and 450 job losses, any measures we take aim to protect about 5,000 jobs at our remaining 215 restaurants, as well as the longevity of the business.

“We understand this is a difficult time for everyone involved.

“We appreciate the support of our business partners and are doing everything we can to help our team members during this process, including speaking with those affected by the consultation.”

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