Coin Press - Bankrupt ex-Turkey operator of KFC, Pizza Hut says wages to be paid

IS Gida, the franchise operator, filed for bankruptcy last week with its CEO Ilkem Sahin saying it had an outstanding debt of 7.7 billion Turkish liras ($214 million).

The bankruptcy could result the closure of 537 restaurants and the loss of some 7,000 jobs, prompting protests in several cities including Istanbul.

The announcement came four weeks after KFC's parent company Yum! Brands said it was ending its relationship with IS Gida over its "failure to meet (company) standards".

IS Gida said it had paid salaries up to the end of the year with only January's wages outstanding.

"As a result of the regular salary payments made up until today, we have no outstanding salary debts to our employees before 2025," it said in a statement, quoted by HaberTurk newspaper.

"However, due to the difficulties experienced after Yum! Brands unilaterally terminated our contract on January 8... January salaries could not be paid."

Speaking to Anadolu news agency, Sahin said the company had seen its "assets seized by banks and state institutions, including the factories" and that he had pledged all his savings "as collateral".

IS Gida said it had been given a provisional three-month timeframe to resolve its situation.

"This process seeks to restore our financial balance and find the most appropriate legal solutions for all parties," it said on Wednesday.

It also said the January salaries of its employees would be paid by the end of February.

"Our employees will receive compensation, notice pay and leave, if any, within the scope of the dismissal process," it added.

Y.Uduike--CPN