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.
Abaigael Schlomski is an accomplished economist and financial journalist with over a decade of experience in the industry. He is a regular contributor to EconomicInform, where he provides in-depth analysis and expert commentary on the latest economic trends and events. With a keen understanding of the financial markets and a talent for breaking down complex economic concepts for a general audience, Maurice is a trusted and respected voice in the field.
