KFC and Pizza Hut Owner in Turkey Bankrupts

IS Gida has filed for bankruptcy with debts of 7.7 billion Turkish liras ($214 million), after Yum! Brands announced more than a month ago in a statement that it was terminating its franchise agreements with IS Gida, justifying the decision with what it described as "IS Gida's alleged failure to meet the company's core standards," according to a press release.

The statement also said that the closure would affect 283 KFC restaurants and 254 Pizza Hut restaurants in Turkey, and that the restaurants were expected to close "at least temporarily" at that time, but IS Gida denied the accusations against it, and said - in a statement at the time - that it meets quality standards and continues to operate without interruption.

The company, which owns and operates KFC and Pizza Hut restaurants in Turkey, added that it increased its total number of restaurants to 537 with a growth rate of 300% in the first three years by merging the KFC brand in 2020 and the Pizza Hut brand in 2022.

The company, which provides employment to about 7,000 people as of 2025, said it deserves the growth award from Yum! Brands in 2023 thanks to this performance, according to the statement published by Anadolu Agency.

The company's CEO, Ilkem Sahin, said in a statement: "Now that it is in the news, I can clearly say that the reality we are facing today is a debt of billions of Turkish liras, the company's real estate that has been seized by banks and state institutions, including our factories, and all my savings that I pledged as collateral."

The bankruptcy proceedings will result in the loss of about 7,000 jobs with the closure of 537 restaurants operated by the company in Turkey. This has sparked protests in several cities including Istanbul.

Both KFC and Pizza Hut are among the Western brands in Turkey that have been targeted by boycott calls over their ties to Israel following the war in Gaza.

This week, on February 12, the former operator of KFC and Pizza Hut restaurants in Turkey pledged to pay the remaining salaries of its 7,000 employees just days after filing for bankruptcy.