Pizza Hut is to close 68 restaurants and 11 delivery sites in the UK with the loss of 1,210 jobs, after the firm running them fell into administration.

The US hospitality company Yum! Brands, which owns the global Pizza Hut brand as well as KFC and Taco Bell, said it had bought the remainder of the UK restaurant operation in a pre-pack administration deal. The deal will save 64 Pizza Hut sites in the UK and secure the future of 1,277 workers, the company said. Those sites will be owned directly by Yum.

The closures come only nine months after the purchase of the UK Pizza Hut franchise by Directional Capital, a US private equity firm that already operated Pizza Hut restaurants in Sweden and Denmark. Directional claims to manage more than $5bn (£3.7bn) in assets, with a focus on mid-market companies that need to raise cash.

Pizza Hut opened its first UK restaurant in London’s Islington in 1973. Staff numbers at the company rose to more than 14,000 in 1999 and it counted nearly 700 locations by 2006. However, it has struggled in recent years as casual dining chains have faced stiff competition to attract hard-pressed consumers suffering the effects of inflation on their disposable incomes.

Pizza Hut survived the Covid pandemic lockdowns – albeit while closing 29 branches – only to be hit by higher costs such as rising energy bills as well as increased taxes.

Nicolas Burquier, managing director of Pizza Hut Europe and Canada, said:

“This targeted acquisition aims to safeguard our guest experience and protect jobs where possible. Our immediate priority is operational continuity at the acquired locations and supporting colleagues through the transition.”