Heart with Smart - Administration

Heart with Smart, the operator of 140 dine in Pizza Hut restaurants across the UK, had 139 of its franchises purchased out of pre-pack administration by US-based private equity firm Directional Capital, which already operates Pizza Hut restaurants in Sweden and Denmark.

Advisers from Interpath were originally engaged in November to find a buyer or new investors after the company restructured its debt and equity in April.

Immediately on the appointment of Will Wright and Chris Pole of Interpath as joint administrators on 16 January, the company’s business and assets (all but one restaurant) were sold to Directional Capital, saving 3,000 jobs.

The administration and pre-pack deal pertain only to Pizza Hut Restaurants, the dine in arm of Pizza Hut. The delivery arm (which is owned by Yum! Brands) is unaffected.

Wilmington Trust and Wells Fargo have registered charges against the company.