SEOUL, Aug. 31 (Korea Bizwire) – Yum! Brands Inc., the U.S.-based fast food chain operator, has sold its Korean unit of Pizza Hut to a local investment company, Pizza Hut Korea said Thursday.
Yum! Brands signed a deal with Orchard One Inc. on Wednesday to sell its 100-percent stake in Pizza Hut Korea. The two companies declined to reveal the sale price.
Orchard One, an affiliate of local investment company KH Investment Inc., was set up to purchase the stakes of Pizza Hut Korea.
“The sell-off decision was made to better adapt to the fast-changing Korean dining industry with a simpler organization and decision-making process,” Pizza Hut Korea said.
The announcement came as the restaurant chain is suffering from losses amid tough market competition. Pizza Hut Korea is known to have suffered deficits since 2013.
The company said the current management board will remain as it is, adding it does not have a plan for restructuring.
After launching its first local outlet in Seoul in 1985, Pizza Hut currently has 330 chains in South Korea.