Administrators outline £3.7 million pre-pack sale and creditor recoveries at Pizza Hut franchises

The joint administrators of DC London Pie Ltd, the UK Pizza Hut franchisee that collapsed in October, have released their Statement of Proposals, detailing a £3.7 million pre-packaged sale to Yum! Europe Limited, the franchisor’s regional arm, and setting out bleak recoveries for most creditors. According to the report filed by Lindsay Hallam, Christopher Bennett, and Matthew Callaghan of FTI Consulting, the transaction—completed immediately upon appointment on 20 October 2025—transferred 64 dine-in restaurants and 1,276 employees to Yum! under TUPE, while 79 sites were closed with 1,160 redundancies.

The sale consideration comprised a £3.3 million credit bid against Yum!’s secured debt and £0.4 million in cash, exceeding independent valuations by John Pye & Sons and Cushman & Wakefield. The administrators said the pre-pack was the only viable option after a winding-up petition by HMRC for £9.9 million in unpaid taxes, failed turnaround efforts, and the withdrawal of an alternative bidder. Estimated recoveries include 18% to the £18.2 million secured claim, full payment to ordinary preferential creditors, and less than 10% to HMRC as secondary preferential creditor. Unsecured creditors, owed £6.1 million, are not expected to receive any distribution.

The administrators’ work now centres on collecting pre-appointment trading receipts, managing licence-to-occupy agreements, and investigating £4.8 million of intercompany outflows to other DC Group entities. The administration is expected to conclude within 12 months, likely via dissolution.

The administration is led by Lindsay Hallam, Matthew Callaghan, and Christopher Bennett of FTI Consulting LLP, supported by Shoosmiths LLP (transaction counsel), Burness Paull LLP (Scottish licensing), Cushman & Wakefield (property valuation), and John Pye & Sons (chattel valuation). Nick Elliott of Stag Advisory LLP provided an independent evaluator report.