Pizza Hut’s Largest Franchisee Files for Bankruptcy
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Coronavirus has had an impact on so many businesses!
NPC International, the largest franchisee of Pizza Hut, recently announced they have filed for Chapter 11 Bankruptcy in response to coronavirus challenges, debt, and higher labor and food costs.
The company operates over 1,200 Pizza Hut restaurants and around 400 Wendy’s restaurants.
“As our industry has been in the midst of dynamic changes… we also have been facing increased labor and commodities costs and a higher level of financial leverage that presents obstacles to achieving our long-term business objectives. These challenges have been magnified recently by the impact and uncertainty of COVID-19, and we believe it is necessary to take proactive steps to strengthen our capital structure…” — Jon Weber, CEO & President of NPC’s Pizza Hut division
NPC International stated their Wendy’s and Pizza Hut locations will remain open for business under regular schedules, with employees continuing to receive their regular wages and benefits.