Five Pizza Hut outlets close across North with the loss of 130 jobs

FIVE PIZZA Hut outlets in Northern Ireland shut their doors yesterday with the loss of 130 jobs. Concern remains for 160 remaining staff after the company behind the 14-strong restaurant franchise – Belfast-based Restaurant Management Services – went into administration.

David McClean, a senior partner and insolvency practitioner in Belfast-based Moore, Stephens Chartered Accountants, was appointed administrator to the Pizza Hut franchisee holder.

Mr McClean said the franchises had been “operating in an increasingly competitive market for sometime”.

He said the company’s financial situation had been exacerbated by the downturn in the local economy, which had resulted in the decision to enter administration.

Mr McClean said that, after assessing the current trading position of the pizza outlets run by the Belfast company, he had no option other than to close five out of the 14 immediately.

“These outlets are in Dublin Road, Yorkgate and Connswater in Belfast, in Coleraine and Dungannon.”

However, the administrator said arrangements had been put in place to allow four other outlets in Lisburn, Carrickfergus, Ballymena and Glengormley, which employ about 120 people, to remain open.

Mr McClean said he would also be working closely with Restaurant Management Services to keep a further five outlets open while their trading positions were assessed. These outlets at the Odyssey, Castlecourt and Victoria Square in Belfast, and in Carryduff and Bangor employ about 160 people.

Mr McClean said he was working to see if the five outlets could be saved, but could not give any guarantee about their future at this time.

Meanwhile, in Derry union leaders have raised concerns that further jobs are likely to be axed at the Arntz Belting factory which now employs about 130 people.

The plant, which produces fan belts, has been operating a three-day week since last December.

There have been a series of job cuts at the plant, the latest in March when 28 people were offered voluntary redundancy.

The union Unite believes up to 30 jobs could go in the latest round, but there has been no confirmation from Arntz Belting about its plans.

The union has also voiced its concerns about the move by one of the North’s largest manufacturers to introduce a 10 per cent reduction in working hours at its plants from Monday. American-owned FG Wilson said the reduction in working hours would be a short-term measure to “manage costs in the short term”.

The company, which is owned by Caterpillar, has axed more than 300 jobs across its plants in Larne, Springvale and Monkstown.

Unite said the proposal would result in employees working on average four hours a week less, which would result in a corresponding cut in wages.