Fast food company NPC International, which operates hundreds of Pizza Hut and Wendy’s restaurants, is about to apply for Chapter 11. The large franchisee would have missed an interest payment on outstanding debt and would then have talks with creditors about a bankruptcy filing, according to business newspaper The Wall Street Journal.
NPC owns over 1,200 Pizza Hut restaurants and 385 Wendy’s stores. It would have about $800 million in debt outstanding. If the company enjoys bankruptcy protection, it will be easier to close unprofitable restaurants and carry out a reorganization more easily. NPC representatives were not readily available for comment.
NPC is certainly not the first restaurant company to get into trouble as a result of the crisis. The parent company of Chuck E. Cheese and the American branch of sandwich chain Le Pain Quotidien also filed for bankruptcy. Because of the haunting virus, restaurants had to lock their businesses for weeks to prevent spreading.