Pizza Hut Quits Turkey as KFC Operator Collapses with ₺4.4B Debt
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The owner of more than 500 KFC and Pizza Hut restaurants in Turkey, İş Gıda AŞ, has officially gone bankrupt after its request for concordat protection was rejected by the court. The Istanbul Anadolu 1st Commercial Court ruled yesterday that İş Gıda AŞ and its affiliate İshway Gıda must liquidate, marking one of the most high-profile corporate collapses in the Turkish food and beverage sector.
From 5,200 Employees to Just 81
At the beginning of 2025, İş Gıda employed around 5,200 people. By the time of the bankruptcy ruling, that number had plummeted to just 81 employees. According to official reports, more than 3,000 workers received ₺430 million in payments, but hundreds remain in limbo as the liquidation process begins.
Debt Totals ₺4.4 Billion
A report prepared by the concordat commissioners—Prof. Dr. Serdar Kale, Sabit Selman Tünal, and Ferhat Kurç—confirmed that İş Gıda was “insolvent.” The company’s total debt was recorded at ₺4.36 billion, of which nearly ₺1 billion is owed to Yum! Brands, the U.S.-based owner of KFC and Pizza Hut. Another significant liability was ₺541 million owed to a foreign-owned private bank operating in Turkey.
Pizza Hut Exits Turkey, KFC Finds a Buyer
During the restructuring process, some KFC branches were acquired by HD Holding, the group behind HD İskender and Pidem restaurant chains. However, no buyer could be found for Pizza Hut. As a result, the Pizza Hut brand has effectively withdrawn from the Turkish market, ending its presence after years of operations.
Courtroom Tensions: Pleas and Objections
The bankruptcy case drew strong reactions from various parties. Company lawyers argued that an immediate bankruptcy ruling would leave many assets idle, requesting more time. Some creditors supported extending the restructuring period, while others pushed for outright rejection of the concordat plan. Even the Turkish Volleyball Federation, which had a sponsorship deal with İş Gıda, appeared among the list of creditors.
Mixed Fate for Other Group Companies
While İş Gıda and İshway Gıda were ordered into bankruptcy, not all affiliates met the same fate. The court canceled the definitive concordat ruling for Pann Stüdyo Reklam Ajansı AŞ, rejecting its request for protection but sparing it from bankruptcy since it was not deemed insolvent. Meanwhile, İş Holding, İş Global Teknik AŞ, and group owner İlkem Şahin received an extension of nine months on their concordat protection.
Notably, İlkem Şahin, who had also applied for concordat, did not attend the hearing, citing health issues.
A Collapse That Redefines the Market
The fall of İş Gıda signals not only the end of Pizza Hut’s presence in Turkey but also a warning for other international franchises struggling with inflation, high debt burdens, and rising operational costs. The company’s debt restructuring attempts, which began with a three-month temporary reprieve followed by a definitive extension in June, ultimately failed to rescue the business.
As İş Gıda’s collapse unfolds, thousands of former employees, creditors, and business partners are left facing uncertainty. The case also highlights the fragile state of heavily leveraged companies in Turkey’s food and beverage sector, where rising costs and shifting consumer demand have reshaped the market landscape.