Korea Pizza Hut Applies to the Court to Begin Rehabilitation Proceedings...Affiliate compensation issue

Korea Pizza Hut, which runs a pizza Hut franchise business in Korea, has applied to the court for rehabilitation due to compensation for franchisees.

The Seoul Rehabilitation Court said today (5th) that Pizza Hut Korea has applied to the court to initiate rehabilitation procedures and self-restructuring programs.

In addition, the court ordered conservation and comprehensive prohibition against Pizza Hut in Korea, freezing assets and liabilities, and prohibiting the collection of individual bonds such as compulsory execution and seizure.

Earlier, about 90 Korean Pizza Hut franchisees filed a lawsuit for damages in 2020 to the effect that the headquarters did not agree with the store owners and sold the raw and subsidiary materials with margins, saying it was unfair.

Korea Pizza Hut lost in the second trial, and it has to pay about 21 billion won to the store owners.