Pizza Hut And Wendy’s Possibly Filing Bankruptcy!
It appears that one of the largest restaurant franchisees in the U.S. is expected to file for bankruptcy, according to Fox News.
If you love Pizza Hut and Wendy’s NPC International, which owns over 1,200 Yum Brands nearly 400 for Wendy’s, may file for Chapter 11 protection as early as today. Continue for more details about Wendy’s and Pizza Hut filing for bankruptcy…
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CelebnPolitics247.com has learned from the ChillicotheGazette that Yum Brands Pizza Hut restaurants and nearly 400 for Wendy’s maybe filing bankruptcy.
It is sad news that we may lose Wendy’s and Pizza Hut due to the impact of Covid-19.
The site reports:
The franchise has struggled for years as Yum! Brands found that turning around the pizzeria chain was a more intractable problem than it originally believed. Meanwhile, Wendy’s fought to maintain the pace of growth alongside McDonald’s and Restaurant Brands International’s Burger King.
And with Bankruptcy already on the menu It’s Just a matter of time:
NPC International defaulted on the financial covenants in its lending agreement last year and missed interest payments on nearly $800 million in loans back in January. The franchisee, which has $1 billion in debt, began considering filing for bankruptcy back then as declining sales and rising labor costs have pressured restaurants across the country.
While the coronavirus pandemic has led to several restaurant chains filing for bankruptcy, including the kids’ food and entertainment chain Chuck E. Cheese, the restrictions imposed on restaurants to offer only takeout and delivery ought to have helped bolster NPC’s chances for survival.
Yum! Brands acknowledged the franchisee’s troubles would lead to “choppiness” in the performance of the Pizza Hut segment this year, the chain has been transforming itself over the past three years in an attempt to lure consumers back in, improving its menu and efficiency.
Most Pizza Huts have been transitioning to carry out and delivery locations. Even Wendy’s has also invested in its drive-thru technology, but it hasn’t been enough to overcome the severe impact of the COVID-19 pandemic.
Owner Eldridge Industries promised support as needed through its recovery may now be at an end.