Operator of KFC and Pizza Hut in Turkey declares bankruptcy

İş Gıda AŞ, which operated KFC and Pizza Hut restaurants in Turkey for many years, has declared bankruptcy following the rejection of its concordat request. The İstanbul Anadolu 1st Commercial Court of First Instance ruled for the bankruptcy of İş Gıda AŞ and its group company, İshway Gıda Dağıtım AS. In line with this decision, it was noted that the company has a total debt of 4.4 billion TL.

The company's largest creditor was identified as Yum! Brands, the international owner of the KFC and Pizza Hut brands. It was disclosed that İş Gıda owes approximately 1 billion TL to this company, in addition to a 541 million TL debt to a foreign-capital private bank.

Companies under the İş Holding umbrella filed for a concordat in February of this year. The court initially granted a 3-month temporary grace period, followed by a final grace period on June 30. However, the process ended after the concordat commissioner's report, prepared on September 23, determined that İş Gıda AŞ was "insolvent."

News Source: 12punto