Pizza Hut Restaurants has not ruled out the possibility of a CVA after becoming the latest casual dining chain to explore restructuring options.
The company – which is a separate entity to the delivery operation – has instructed professional services firm Alvarez & Marsal to examine what its next steps should be, according to Sky News.
Sources said that a final decision had yet to be taken by the chain but that a CVA was “a distinct possibility”.
It said it was unclear how many sites or jobs might be at risk under any restructuring process.
Pizza Hut operates 244 restaurants in the UK and the majority of those have now reopened, with the rest understand to be back online prior before the end of August.
In a statement, a spokesman told Sky News: “Despite government support, and entering lockdown from a place of strength, the cost of lockdown combined with reduced trading levels has had a substantial impact on the whole restaurant sector.
“Along with many other businesses, we are looking at ways to minimise that financial impact, while continuing to trade as usual. Whether this will require financial restructuring in the form of a CVA or otherwise is as yet undecided.”
Pizza Hut Restaurants is a separately-owned entity to the brand’s UK delivery arm, which trades from a further 380 outlets.
CVAs have become a common mechanism for casual dining chains as they look to safeguard their businesses following the devastating economic impact of coronavirus.
The process has been used to reduce exposure to unprofitable sites and negotiate more favourable leases with landlords.