Pizza Hut’s largest UK franchisee, Heart With Smart (HWS), is close to securing a rescue deal that would safeguard most of its 140 outlets and 3,000 jobs, according to Sky News.
Directional Capital, an investment firm managing Pizza Hut operations in Denmark and Sweden, is in advanced talks to acquire HWS.
The deal, expected as early as Wednesday, may involve a pre-pack administration to restructure HWS’s finances. Insiders say minimal store closures are anticipated.
HWS licenses the Pizza Hut brand from Yum! Brands and has faced financial pressures, including rising costs from national insurance hikes. Directional Capital is also linked to two Pizza Hut delivery franchisees in the UK.
If completed, the deal will conclude a months-long sale process managed by Interpath Advisory.