NPC International, which operates 1,136 Pizza Hut restaurants and 386 Wendy’s locations announced Wednesday it is filing for Chapter 11 bankruptcy.
The company said that it plans to keep its combined nearly 1,500 restaurants open during bankruptcy proceedings. NPC International has a total of approximately 7,500 full-time employees and approximately 28,500 part-time employees spread through 30 states and Washington, DC.
NPC International said that labor costs, increased expenses for supplies and the uncertainty due to the COVID-19 outbreak contributed to the company’s downturn.
“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,” said Jon Weber, CEO & President of NPC’s Pizza Hut division. “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 restaurant industry has faced turbulence over the last few months.
Just last month, the NPC International added 140 Wendy’s locations to its portfolio of restaurants.
NPC International is the largest franchisee of Pizza Hut locations.
