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Pizza Hut landlord row heads for High Court

03 September 2008

A row between Pizza Hut and the landlords of one of its restaurants at Scunthorpe is heading for the High Court.

Pizza Hut accuses landlords, Ashflame Scunthorpe, of breaching a lease by allowing a rival pizza company to operate nearby.

Now Pizza Hut is demanding damages for its financial losses caused by the rival pizza parlour at Gallagher Leisure Park in Doncaster Road, Scunthorpe.

In a writ issued at London's High Court and just made publicly available Pizza Hut accuses the landlords of breaching a November 2004 lease.

Pizza Hut claims the landlords, in the lease, agreed not to allow any part of the estate to be used for a food area where more than 5% of the turnover is from pizza, or pizza based products.

This, claims the restaurant chain, is binding on the landlords, and they are now seeking a court injunction banning Ashflame Scunthorpe from breaching the lease.

Pizza Hut is also seeking an inquiry into what damages it has suffered as a result of the action.

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