The firm behind Pizza Hut's º£½ÇÊÓƵ restaurants was in debt to the tune of nearly £30m when it collapsed, resulting in over 1,100 job losses, new documents reveal.
DC London Pie entered administration late last month, with FTI Consulting appointed to manage the process.
A recent document has shed light on the full extent of its financial woes, revealing the amount owed to creditors and the likelihood of them recouping their funds.
The document from FTI Consulting also confirmed that Yum! Brands, the owner of the Pizza Hut brand, purchased the business operations of DC London Pie along with a significant portion of its assets for £3.7m, as reported by .
At the time of the company's entry into administration and the announcement of the deal with Yum! Brands, no sale figure was disclosed.
The agreement included 64 Pizza Hut outlets and 1,254 employees, leading to the closure of 79 sites and the loss of 1,160 jobs.
According to the document from FTI Consulting, the company's secured creditor is due £18.2m and has received 18 per cent of this sum.
However, secondary preferential creditors, who are collectively owed £11m, are expected to receive less than 10 per cent of their claims.
Unsecured creditors, who are owed £6.1m, will not receive any repayment.
FTI Consulting added that ordinary preferential creditors are anticipated to receive the full £300,000 they are owed.
DC London Pie took the reins of Pizza Hut's º£½ÇÊÓƵ restaurants when their former owner, Heart With Smart (HWS), fell into administration earlier this year.
HWS was rescued in January by an entity controlled by investment firm Directional Capital, in a deal that saved all but one Pizza Hut location.
The pre-pack administration process, supervised by Interpath Advisory, concluded a two-month search for new investors for the company. This arrangement preserved over 3,000 jobs nationwide.
Before its rescue, HWS was owned by lender Price and the company's executives following a management buyout valued at £100m in 2018.
Previously, the Pizza Hut franchise was under the ownership of private equity firm Rutland Partners.
A document lodged with Companies House in May disclosed that HWS owed its creditors more than £50m at the time of its collapse.
Established in August 2024 and based in London, DC London Pie is part of the DC Group.
The DC Group, ultimately owned by Dwayne Boothe and Corey Printup, also operates Pizza Hut franchises in Denmark and Sweden.
When HWS fell into administration in January, it acquired a majority stake in the business for £10m. Yum! extended a loan facility of £18.2m to partially finance the deal.
In FTI Consulting's report, the administrators said: "Post-acquisition, management initiated a turnaround strategy which included headcount rationalisation (including the prior executive management team), the closure of certain underperforming sites, and optimisation of in-store staffing levels.
"Whilst these measures sought to reduce run-rate overheads, the company incurred exceptional restructuring costs and experienced significant working capital pressures."
They noted that the Pizza Hut franchisee experienced declining like-for-like sales due to "intensified competition from quick-service restaurant operators and delivery aggregators".
Additional challenges came from mounting pressures arising from food inflation and labour costs, alongside the National Living Wage increase from April 2025 "which had not been passed on in full to the consumer".
Between January and September 2025, the business transferred £4.8m to support working capital requirements across other DC Group entities, whilst simultaneously repaying £4.9m in funding during the same timeframe.
Consequently, the company found itself unable to meet multiple obligations, including tax liabilities, trade creditors, utilities bills and royalty payments.
