Pizza Hut chief Hofma clinches buyout of chain's UK division

The British operations of Pizza Hut will be sold in the next‎ few days to a buyout team led by its chief executive, even as rival casual dining chains face painful restructurings or bankruptcy.

Sky News has learnt that the 260-outlet business will change hands in a deal estimated to be worth more than £100m.

The transaction will involve CEO Jens Hofma, who has run Pizza Hut UK since 2009, being backed by debt provided by Pricoa, a US-based institution.

It is expected to be signed as early as Friday, more than two years after current owner Rutland Partners hired advisers to run an auction.

An announcement is likely to be made early next week, according to insiders.

The management buyout was reported to be at an advanced stage exactly a year ago, with the reasons for the drawn-out nature of the deal unclear.

Pizza Hut UK's fortunes have been revived under Mr Hofma, although the outlook is uncertain.

Financial results for the bulk of 2016 showed a 15% increase in restaurant‎ earnings before interest, tax, depreciation and amortisation to £233m.

However, this excluded exceptional items, and figures for what is said to have been a tough 2017 are not yet available.

Mr Hofma and his team have presided over an expensive modernisation programme involving the refurbishment of the bulk of its estate, and are said to be confident in the‎ chain's future.

The management buyout of Pizza Hut UK comes as other restaurant chains, including Byron and Prezzo, have‎ resorted to restructuring mechanisms to shed scores of sites.

Rising costs including the National Living Wage and the rapid growth of delivery services have eroded demand at many traditional restaurant chains.

A Pizza Hut UK spokesman declined to comment.