DC London Pie Ltd, the entity that operates Pizza Hut’s dine-in restaurants, has entered administration on Monday 20 October 2025. This comes less than a year after DC London Pie Ltd purchased the Pizza Hut restaurants.
The administration is expected to result in the closure of around 64 of its restaurant sites and 11 delivery sites, with over 1,200 jobs at risk of redundancy.
But what is actually happening?
Solicitors in our Restructuring & Insolvency Team, Jonathan Moor and Benjamin Molyneux, have shared what they believe is next for the pizza chain, below.
“Administration is a statutory insolvency procedure initiated when a company faces significant financial distress, particularly cashflow problems and actual or potential adverse creditor actions.
"It provides a company with temporary protection from such adverse creditor actions through a statutory moratorium. A moratorium is a legal pause on certain actions that creditors can take against a company. It’s like hitting the pause button to give a company breathing space to allow for insolvency practitioners to pursue one of the statutory objectives of administration—most commonly, transferring the business of the company as a going concern to another (solvent) company.
"YUM! III (UK) Limited, the secured lender of Pizza Hut and who also operate KFC and Taco Bell, appointed FTI Consulting LLP as the administrators on 20 October 2025. The appointment followed the presentation of a winding-up petition by HMRC on 11 September 2025 following unpaid tax liabilities.
"Decisive action was required if Pizza Hut was to have any realistic prospect of maximising the value of its business and assets for the benefit of the body of creditors, so that they get a slice of the pizza and are not just left with the pizza’s crust.
"Shortly after the appointment of the administrators (and most certainly negotiated over the weeks leading up to the appointment) a sale of part of the business was made to YUM! as a ‘pre-packaged’ administration (‘pre-pack’ for short).
"YUM! bought the restaurant operation saving 64 sites and around 1,276 jobs. Without YUM! Brands’ intervention via a pre-pack administration, Pizza Hut’s doors would likely have closed for good - its fate sealed, and its legacy left to crumble.
But what does the future hold for Yum! and Pizza Hut?
"Upon their appointment, the Administrators of Pizza Hut explained cash flow difficulties arose from a range of challenges commonly faced in the hospitality sector—including tough trading conditions, rising operational costs, and ongoing cash flow constraints.
"While the collapse of a company associated with such a well-known brand may appear surprising at first glance, it has not come as a shock to many within the industry.
"Back in November 2024 - just a month after the autumn budget - Pizza Hut announced plans to raise an additional £10 million to offset the financial impact of increased employer National Insurance contributions and the uplift in the National Living Wage.
"Despite being a household name, the chain could not absorb the costs through their profits as expected by Chancellor Rachel Reeves, instead doing things differently and highlighting the financial pressure they were under.
"As a chain famed for its iconic children’s birthday parties, where filling up on the unlimited salad bar was a mandatory practice, and half and half pizzas revolutionised lunchtimes, many will be hopeful that this administration marks a turning point for the business and the beginning of its revival.
"But Pizza Hut is not alone. Since mid-2022, company insolvencies have climbed to levels not seen since the 2008 financial crisis. Business owners and managers, as well as we who advise, await the Chancellor’s Autumn Statement with some trepidation. Uncertainty can put plans for future growth or even the financial viability of many of our high street hospitality and retail giants into hiatus.”
Should you have any queries or concerns, it is also best to seek advice as early as possible. At Knights, we have a nationwide of business advisory specialist dedicated to rescuing companies or at least the enterprise value of businesses, so please do not hesitate to get in touch. For more information, please contact restructuringandinsolvency@knightsplc.com