The former operator of the KFC and Pizza Hut franchises in Türkiye, Iş Gıda said on Wednesday it would pay the outstanding salaries of its 7,000 staff, just days after filing for bankruptcy.
Iş Gıda, the franchise operator, filed for bankruptcy last week with its CEO Ilkem Şahin saying it had an outstanding debt of TL 7.7 billion ($214 million).
The bankruptcy could result in 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 Iş Gida over claiming "failure to meet (company) standards."
Iş Gıda 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 in the local media.
"However, due to the difficulties experienced after Yum! Brands unilaterally terminated our contract on Jan. 8 ... January salaries could not be paid."
Speaking to Anadolu Agency (AA) Şahin 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."
Iş Gıda 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 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.
