ISTANBUL 

Is Gida, the former owner and operator of KFC and Pizza Hut restaurants in Türkiye, has filed for bankruptcy with a debt of 7.7 billion Turkish liras ($214 million).

The company's CEO, Ilkem Sahin, in a statement earlier this week, said: "Now that it is in the news, I can clearly say that 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 bankruptcy proceedings led to the loss of around 7,000 jobs with 537 restaurants operated by the company closing in Türkiye.

It came after Yum! Brands, the owner of the international fast food chains, terminated franchise agreements with Is Gida on Jan. 8.

Chris Turner, chief financial and franchising officer of Yum! Brands, said "prior to termination, Yum! Brands engaged with IS Gida over several months to provide assistance and resolve key issues, but IS Gida was ultimately unable to maintain compliance with our standards and adhere to fundamental provisions of our franchise agreements."

KFC and Pizza Hut are among several Western brands in Türkiye that have been subject to boycott calls over their links to Israel, which has killed more than 47,000 people in Gaza since Oct. 7, 2023 and continues violations in the occupied West Bank.