Pizza giant Papa John’s breaks silence on closure rumours with 15-word statement

EXCLUSIVE: Despite rumours of huge closures by the pizza giant Papa John’s, the Daily Star has been told that the opposite is true in a stark statement from bosses

Bosses at pizza giants Papa John’s have clarified rumours of mass closures. Earlier this week it had been claimed that the chain was closing 74 stores and was in grave financial trouble.

And it was even claimed that another 100 more were under threat. The news came after it was confirmed that it made a pre-tax loss of £21.8 million for its latest financial year, compounding a £19.2 million loss reported in 2023.

The last time Papa John’s saw its last pre-tax profit in the UK in 2021, when it posted £8.1 million along with a turnover of £102.3 million during the same period.

However, it turns out that the truth is not quite what it seems after the Daily Star questioned the company’s representatives.

In a statement provided by a Papa Johns spokesman, the reported closures are not new . . . and the company is actually on the up.

Speaking to the Daily Star, the spokesman said: “The store closures that were included in the Companies House filings are not new developments – they were reported and took place over the two years as part of our previously announced strategic review.

“Additionally, as reported, our UK business is profitable when excluding restructuring costs incurred as part of our strategic business review. We’ve made significant progress in repositioning the business for growth, and we are pleased with the momentum we are seeing so far this year.”

However, over the course of the last year, Papa John’s has shut down 74 of its pizza outlets but has opened seven new ones – ending 2024 with 457 locations across the UK.

So while the closures are not happening now, they have happened within the last year.

The mixed messages continue, however, as UK managing director Chris Phylactou disclosed on City AM’s Boardroom Uncovered programme recently that the company has ceased losing money and is positioned to deliver its first UK profit since 2021.

He explained: “That’s because of the difficult decisions we made back then. Having people lose their jobs is the last option for us. We tried everything to keep the restaurants open.”

“It’s never an easy decision and something that I wasn’t happy doing, but it’s something that we had to do as a brand.

“We maintained the restaurants probably longer than we should have to safeguard the workforce for as long as possible and we put a lot of effort into trying those trying to turn those businesses around.

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