Popular restaurant chain with 77 branches closes three sites after rescue deal

A POPULAR restaurant chain with 77 branches has closed three sites following a rescue deal.

Asian-inspired Itsu has seen three of its sites suddenly close after one of its franchise partners was saved from collapse.

Heart with Smart (HWS) was bought by investment firm Directional Capital last week in a pre-pack administration deal.

A "pre-pack administration" deal is an insolvency process for a business to sell its assets before the appointment of administrators.

The hospitality franchise was best known as the operator of Pizza Hut's dine-in restaurants in the UK, with the firm taking over around 150 of the sites as part of the deal.

Speaking at the time, Jens Hofma, the chief of HWS, told Sky News: "The future of the business has been secured with a strong platform in place."

The move does not impact Pizza Hut's takeaway arm which is owned by Yum Brands Inc.

Alongside operating Pizza Hut's restaurant chain, HWS also ran a handful of Itsu sites.

Now reports have said that three of its branches across Aberdeen, Edinburgh, and Reading have closed abruptly.

Scottish newspaper The National said the Aberdeen branch closed on Saturday January 18.

A notice posted on the restaurant read: “The lease and ownership rights have unfortunately got caught up in their administration process. This restaurant has had to close while things are sorted out.

“We hope to re-open soon, and we will keep you updated on Itsu.com.”

A similar note was posted at its Edinburgh site, according to trade publication Restaurant Online.

The Itsu website page also states the branches are closed and will "hopefully reopen soon."

It's worth noting that the statement means these stores are not necessarily closed for good and could possibly open again.

The outlet said it has confirmed that the three branches were also included in HWS's sale of assets to Directional Capital.

The Sun has contacted Itsu for comment.

Itsu, which sells healthy Asian-inspired noodles and salads, has around 77 sites across the UK.

It was founded by British entrepreneur Julian Meltcalfe, who also owns Meltcalfe's Food Company.

The multi-millionaire also founded Pret before selling it for £364million 

TROUBLE FOR UK RESTAURANTS

It comes as a number of popular restaurant chains have closed due to diners having less money to spend on meals out

Britain's "rudest restaurant"  Karen's Diner closed all its UK sites last year after its parent company, Viral Ventures UK, reportedly racked up more than £400,000 worth of debt.

TGI Fridays closed 35 sites after collapsing into administration last September.

More than 1,000 staff lost their jobs after a deal to save the chain excluded the struggling sites.

Private equity firms Breal Capital and Calveton UK stepped in to save the chain's other restaurants, which now operate under the parent company Liberty Bar and Restaurant Group.