Operator of 1200 Pizza Hut restaurants and 400 Wendy's franchises files for Chapter 11 bankruptcy

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Operator of 1200 Pizza Hut restaurants and 400 Wendy's franchises files for Chapter 11 bankruptcy

Operator of 1,200 Pizza Hut restaurants and 400 Wendy's franchises files for Chapter 11 bankruptcy amid coronavirus pandemic citing de

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Operator of 1,200 Pizza Hut restaurants and 400 Wendy’s franchises files for Chapter 11 bankruptcy amid coronavirus pandemic citing debts of nearly $1BILLION

  • NPC International operates nearly 1,600 franchises, which employ around 36,000 people
  • Company has been hard hit by the coronavirus pandemic, but also cited rising food and labor costs as issues
  • CEC Entertainment, the parent company of Chuck E. Cheese and Peter Piper Pizza, also filed for Chapter 11 last week 
  • Hertz, JCPenney, J. Crew and Neiman Marcus have also filed for bankruptcy amid the coronavirus pandemic  

NPC International, the country’s largest franchisee of Pizza Hut and Wendy’s restaurants, has filed for  bankruptcy. 

The Kansas-based company, which operates 1,200 Pizza Hut restaurants and nearly 400 Wendy’s outlets, filed for Chapter 11 on Wednesday, citing a debts of almost $1 billion. 

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

NPC International, the country’s largest franchisee of Pizza Hut and Wendy’s restaurants, has filed for bankruptcy

There are around 7,100 Pizza Huts across the United States, meaning NPC International operates around one-sixth of all the restaurants. 

The company only operates less than 10 percent of the 6,500 Wendy’s restaurants that are open across the country.   

NPC International says it has been hit hard by 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.’  

NPC International operates less than 10 percent of the 6,500 Wendy's restaurants that are open across the country

NPC International operates less than 10 percent of the 6,500 Wendy’s restaurants that are open across the country

NPC International is the latest in a line of companies that have filed for Chapter 11 bankruptcy since the coronavirus pandemic caused nationwide shutdowns back in March.  

Just last week, CEC Entertainment, the parent company of Chuck E. Cheese and Peter Piper Pizza, also filed for Chapter 11. 

Meanwhile, rental car giant Hertz filed for Chapter 11 last month after failing to reach a standstill agreement with its top lenders.  The Wall Street Journal reported that the company has roughly $19billion of debt. 

 Clothing brand J. Crew and department stores Neiman Marcus and JCPenney have all declared bankruptcy back in April. 

NPC International says it expects to keep all locations open while it works to trim debt and negotiate with its landlords

NPC International says it expects to keep all locations open while it works to trim debt and negotiate with its landlords

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