Iş Gıda, the former franchise operator of KFC and Pizza Hut in Türkiye, has officially filed for bankruptcy, just a month after Yum! Brands terminated its agreements with the company over alleged non-compliance with corporate standards.
According to Anadolu Agency (AA), Iş Gıda has entered bankruptcy proceedings with a staggering debt of TL 7.7 billion ($214 million). This sudden financial collapse has resulted in the closure of 537 restaurants across Türkiye, including 283 KFC outlets and 254 Pizza Hut branches, leaving approximately 7,000 employees jobless.
Iş Gıda CEO Ilkem Şahin acknowledged the company’s dire financial situation, stating,
“The reality we face today is a debt of billions of Turkish liras, company immovables seized by banks and state institutions—including our factories—and all my savings that I have pledged as collateral.”
The announcement sparked outrage among affected employees, leading to protests outside the company’s headquarters in Istanbul, where hundreds of workers gathered to demand their rights.
Chris Turner, Chief Financial and Franchising Officer of Yum! Brands, stated that the company had engaged with Iş Gıda for several months to resolve operational issues but ultimately found the Turkish operator unable to maintain compliance.
“We provided assistance and sought resolutions, but Iş Gıda was ultimately unable to meet our standards and uphold fundamental franchise agreements,” Turner said.
The situation unfolds against the backdrop of widespread boycotts of Western brands in Türkiye over their alleged links to Israel, following the Gaza conflict that has claimed over 47,000 Palestinian lives since October 7, 2023.
Many international brands operating in Türkiye, including KFC and Pizza Hut, have been subject to growing criticism and calls for consumer boycotts.
