Country’s largest franchisee of Pizza Hut, NPC International, and Wendy’s restaurants, has filed for bankruptcy.
The Kansas-based company operates around 1,200 Pizza Hut restaurants and nearly 400 Wendy’s outlets. It filed for Chapter 11 on Wednesday, citing debts of almost $1 billion.
Chapter 11 is a form of bankruptcy that involves a reorganization of a debtor’s business affairs, debts, and assets, and for that reason is known as “reorganization” bankruptcy.
The franchises employ 36,000 workers across 30 states, but NPC International says it expects to keep all locations open while it works to trim debt and negotiate with its landlords.
NPC International, the country’s largest franchisee of Pizza Hut and Wendy’s restaurants, has filed for bankruptcy.
The company operates about 6 percent of the 6,500 Wendy’s restaurants that are open across the country.
PC International says it has been hit hard by the coronavirus pandemic, but also cited ‘rising food and labor costs’, according to CNN Business.
The CEO of NPC International’s Pizza Hut division, Jon Weber, released a statement saying the company will use the Chapter 11 filing to ‘evaluate and optimize our restaurant portfolio so that we are best positioned to meet the needs of consumers across the country.’
Source: DailyMail