It is assumed that about 300 branches of Pizza Hut restaurants will be closed permanently, after the bankruptcy of one of the largest franchisees in the chain, after NPC International, which submitted an application to declare bankruptcy, announced last July 11th.
Permanently close 300 branches of Pizza Hut restaurants:
And this is about an agreement on Monday with Yum, who is the owner of Pizza Hut, until about a quarter of its restaurants are closed and the remaining sites are sold, which restaurants and exact times have not been determined yet, but the company said that the vast majority of locations affected by dining rooms.
NPC International said that this agreement provides flexibility to explore options in order to achieve the result of maximizing value and seeks to finalize the terms of the comprehensive financial restructuring.
This is related to the new Corona virus, Covid 19, and also with a huge debt burden of nearly one billion US dollars, with high labor and food costs, and this led to the bankruptcy of the company, as are the 1227 Pizza Hut sites.
It is a subsidiary of NPC and is 18% of the chain’s 6,700 locations in the USA, which includes the NPC portfolio of the remaining 6,500 restaurants in the Wendy’s chain in the USA.
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