Pizza Hut’s largest U.S. franchisee, NPC International has filed for Chapter 11 bankruptcy protection in a Texas bankruptcy court. Operating over 1,200 Pizza Hut and nearly 400 Wendy’s restaurants in the United States, the franchisee has been going through a number of issues, including a debt burden of over $1 billion, rising food and labor cost, and the economic uncertainties around the COVID-19 pandemic.
By filing for Chapter 11 protection, NPC can continue to run the business while trying to turn it around.
Pizza Hut spokesperson said that “While NPC’s Chapter 11 filing was expected, we view it as an opportunity to create a better future for NPC’s Pizza Hut restaurants.”
Bakery chain Le Pain Quotidien filed Chapter 11, CFRA Holding – IHOP Franchisee, and Maines Paper & Food Service, a food distributor with Burger King, Longhorn Steakhouse and Olive Garden among its clients, filed for Bankruptcy in the month of May, and Chuck E. Cheese parent company CEC Entertainment for Chapter 11 protection in late June. NPC became the latest company associated with the food chain to file for bankruptcy.