NPC International, Inc., a leading PIzza Hut and Wendy’s franchisee has filed for Chapter 11 bankruptcy protection.
The company, based near Kansas City, said the filing was aimed at restructuring its debt and clear the way for “optimizing” (closing( locations. Chapter 11 gives companies more flexibility in terminating building leases.
NPC has Pizza Hut locations throughout Delaware. Over the years, the company has closed msny of its full-service restaurants, with the distinctive red roof, in Delaware and moved to carry-out and delivery locations.
“As our industry has been in the midst of dynamic changes due to shifting consumer preferences and dining behavior, 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,” said Jon Weber, CEO NPC’s Pizza Hut division. “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, so we have the financial flexibility to continue to adapt to current industry trends. We also intend to use this process to continue to evaluate and optimize our restaurant portfolio so that we are best positioned to meet the needs of consumers across the country.”
“The Wendy’s business remains strong and resilient and is already recovering from the impact of the pandemic to produce year-over-year growth. We look forward to continuing our discussions with our brand partners, landlords and other creditor groups and are confident that we will be able to work collaboratively to agree on a long-term plan that is in the best interests of all stakeholders,” Weber added.
NPC’s Pizza Hut and Wendy’s restaurants throughout the country remain open for business on regular schedules.
