NPC International, the largest US Pizza Hut franchisee, has filed for bankruptcy yesterday (Wednesday, 1st July) due to the Covid-19 pandemic.
CNN reported that NPC currently owes a debt of almost US$1 billion (~RM4 billion). Founded in 1962, the company operates 1,227 Pizza Hut and 393 Wendy’s stores across America.
Through the Chapter 11 protection in the Southern District of Texas court, NPC intends to continue to operate in hopes of turn business around. “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,” a Pizza Hut spokesperson said.
The company is currently in the midst of negotiating a restructuring agreement to reduce its debts. Businesses for Pizza Hut and Wendy’s will still carry on as usual for the time being. Under the deal, NPC is looking to sell its Wendy’s restaurants. If the deal doesn’t come to fruition, the company might have to sell “an unspecified number of its Pizza Hut restaurants” as well.
Ever since the spread of the Covid-19 outbreak, most people have move away from traditional dine-in restaurants and have opted for delivery services.