Pizza Hut CVA approved by creditors

Due to the COVID-19 pandemic restaurants like Pizza Hut have been under immense pressure from commercial landlords to pay their rent during the pandemic. Pizza Hut Restaurants ran 244 branches across the UK before the COVID-19 pandemic, employing 5,700 people. However, it was forced to shut all its restaurants during the UK’s lockdown and the sector has been forced to contend with further restrictions across the UK’s nations.

Our Insolvency Solicitors & Barristers are able to give you specialist legal information and advice on your businesses best insolvency options. Just click here to complete our online contact form or for a free initial telephone consultation call 02071830529.

What is a Company Voluntary Arrangement (CVA)?

A CVA is a voluntary agreement for a company is a procedure whereby a plan of reorganisation or composition in satisfaction of debts, is put forward to creditors and shareholders. There is limited involvement by the court and the scheme is under the control of a supervisor.

What next for Pizza Hut?

Pizza Hut is to close 29 stores across the UK, with 450 jobs at risk after a deal was agreed to secure the long-term future of the business. If a vote had not passed, the chain could have collapsed without extra funding – a CVA can only be granted by the courts if a company can show it will face administration without the support.

Pizza Hut’s landlords have agreed to reduce rents on its restaurants after voting for the CVA, the company confirmed. A Pizza Hut spokeswoman stated that:

The Company Voluntary Arrangement (CVA) for Pizza Hut Restaurants, (PHR – the UK dine-in franchise business of the global Pizza Hut brand), is now approved. We are delighted to have reached such a constructive position in partnership with our landlords and creditors.

We appreciate the support of everyone involved and this outcome provides us with a strong platform to secure the long-term future of the business including over 5000 jobs and over 200 restaurants.

How can we help if your company is going into administration?

We add value by our legal services by guiding clients as to how best companies can be rescued and turned around and how debts can be written off or restructured. We can advise on administration or proposals of either Company Voluntary Arrangements (CVAs) (as Travelodge have done) or Partnership and Individual Voluntary Arrangements (PVAs or IVAs). To achieve a company rescue you must act quickly; contact us as soon as possible. The more time available to build an alternative business plan, the more successful it is likely to be. If your company can be saved, whether this is achievable through restructuring or writing off debts, the team can help by offering clear, practical and easy to understand advice which deciphers the Insolvency Rules and regime.

How can we help you oppose a winding up petition?

As a leading law firm with a track record of success, you can be assured that your matter is in safe hands. Our success rate is a result of the dedication of our lawyers who will diligently review your matter so it has the best possible chance of success from the outset when it matters the most.

If your company is concerned about a winding-up petition or statutory demand from a commercial landlord your company can potentially challenge that petition on the following grounds:

1. That the debt alleged in the statutory demand or petition to be owing is genuinely disputed on substantial grounds by your company;
2. Your company has a genuine right of set-off against the creditor that exceeds the amount claimed in the statutory demand; or
3. In certain other limited circumstances (for example such as jurisdiction, technical or procedural error or delay).

In order to oppose a winding-up petition, you would need to file a witness statement in opposition with the Court no fewer than five business days before the date when the petition will be heard by the Court (rule 7.16 of the Insolvency (England and Wales) Rules 2016). You would also need to provide a copy of that witness statement to the petitioning creditor at least five business days before the hearing.

Your company is entitled to appear at the petition hearing and to oppose the making of a winding-up order. It is usual for companies to instruct solicitors and/or barristers to appear on their behalf at the petition hearing.

We represent you at Winding up Petition Hearings

Although we are based in the legal heart of London, operating as the only law firm in the historic Middle Temple Chambers, we provide comprehensive nationwide coverage to represent you at any winding up petition hearing. Our team of solicitors and barristers will prepare grounds of opposition and a witness statement for you.

We will represent you at the winding up petition hearing and will provide our own barristers or external local counsel to any hearing across the country.

Not based in London? We provide nationwide representation

That does not matter, we will represent you no matter where you are based in England or Wales.

If you contact us through our contact form, by email or by phone, one of our winding up petition team members will contact you by phone to discuss your matter and assess whether we can help you.

If we can, we will arrange a conference with a senior member of our winding up petition team. This meeting will take place using our telephone conference facilities or via Skype if you prefer. Therefore, no matter where you are based in England or Wales we can represent you.

Instruct Specialist Insolvency Lawyers

We provide a no cost initial case review to establish whether or not we can help you. We are a specialist City of London law firm made up of Solicitors & Barristers and based in the Middle Temple Inns of Court adjacent to the Royal Courts of Justice.  We are experts in dealing with matters surrounding insolvency in particular issues.  Our team have unparalleled experience at serving statutory demands, negotiating with debtors/creditors, setting aside statutory demands and both issuing and defending winding up petitions vigorously at the Royal Courts of Justice (Rolls Building), or the relevant High Court District Registry or County Court with jurisdiction under the Insolvency Rules.