Burger King is preparing to permanently close a number of UK restaurants as part of a restructuring deal triggered by the coronavirus crisis.
The chain, which is yet to reopen all 530 branches after the government eased lockdown measures in July, has hired advisers from AlixPartners to review 25 restaurants on behalf of its main UK owner.
Sources told Sky News the firm is considering a company voluntary arrangement (CVA) or, more likely, a pre-pack administration deal.
It is understood that the restructuring could result in up to 10 permanent closures.
Burger King's main franchisee in the UK is the private equity firm Bridgepoint, the former owner of Pret A Manger.
It owns around 118 of Burger King's 530 UK outlets, which it acquired in 2017.
However, while closures are expected, the wider chain is understood to want to open at least 30 new drive-thru sites in the next 12 months.
Mirror Money has contacted Burger King for a comment.
The chain has previously spoken out on potential cuts on the back of the pandemic, admitting the business had been severely hit by lockdown.
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In July, Burger King's UK chief executive, Alasdair Murdoch, warned that up to 1,600 jobs could be lost as a result of the coronavirus pandemic.
He said he economic damage stemming from the crisis could ultimately force the company to permanently close up to 10% of its stores.
"We don't want to lose any (jobs). We try very hard not to, but one's got to assume somewhere between 5% and 10% of the restaurants might not be able to survive," he admitted.
"It's not just us - I think this applies to everyone out there in our industry."
"I don't think you can ever get over the top of this problem," he added, speaking about Burger King's lockdown recovery plan.
Last week, Chancellor Rishi Sunak unveiled a new job support plan for those who are yet to return to work full time.
It came after industry experts warned tens of thousands of jobs could be lost on October 31 when the furlough scheme comes to an end.
However, the new initiative will only pay a third of the wages of staff - and only cover those who have been called back to work.
In the seven days since the announcement, oil giant Shell has announced up to 9,000 redundancies while Pizza Hut will close 29 outlets with 450 jobs on the line.
