Up to 300 Pizza Hut restaurants close after bankruptcy of one of the chain’s largest franchisees.
CNN reported NPC International filed for Chapter 11 in the Southern District of Texas in July. On Monday, NPC announced that it had reached an agreement with the owner of Pizza Hut, Yum! Markets, to close a quarter of its restaurants and sell the remaining locations.
The locations set for closure have not been announced, but NPC said there will be a “substantial majority” of restaurants with dining rooms.
Pizza Hut officials said the changes reflect the company’s growing emphasis on takeout and delivery.
“Because our sector is in the midst of dynamic change due to shifting consumer preferences and food behaviors, we are also facing increased labor and commodity costs and a higher level of financial leverage that presents obstacles to achieving our long-term business goals. “These challenges have recently been exacerbated by the impact and uncertainty of COVID-19, and we believe it is necessary to take proactive action,” said Jon Weber, CEO and President of NPC’s Pizza Hut division. to strengthen our capital structure so that we have the financial flexibility to continue to adapt to today’s sector industry. “
NPC has 1,225 Pizza Huts and 385 Wendy’s restaurants. There are more than 6,500 Pizza Hut restaurants in the US
