Roughly 163 Pizza Hut leases have gone up for sale as part of NPC International's bankruptcy restructuring.
The bids for the currently shuttered restaurants in 26 states are due by Oct. 23, according to New York-based A&G Real Estate Partners, the firm handling the auction.
The firm is advising NPC International, which filed for Chapter 11 bankruptcy in July. At the time of the filing, Leawood, Kan.-based NPC International operated more than 1,600 Wendy’s and Pizza Hut restaurants. In August, NPC began the process of selling a portion of its Pizza Hut business. It also closed up to 300 Pizza Hut restaurants. Thus far, there have not been any Wendy’s closures, NPC said.
The locations range in size from 1,000-square-foot takeout and delivery-only restaurants to full service restaurants that run nearly 6,000 square feet. The majority are freestanding locations in neighborhood shopping centers and regional open-air centers.
“With attractive rents and more than 80% of the leases offering extended option terms, these sites provide compelling opportunities for established and start-up foodservice and other retail operators seeking to expand in desirable suburban, urban and exurban markets across the U.S.,” A&G Senior Managing Director Joseph McKeska said in a statement.
A listing of the individual leases is available at www.agrep.com
A&G is also working with NPC to optimize the company's real estate portfolio of more than 1,000 Pizza Hut and Wendy's locations that remain in operation.
NPC, Pizza Hut’s largest franchise operator, said the COVID-19 pandemic exacerbated the company’s existing challenges such as increased labor and commodities costs. The company is also highly leveraged.
After striking an agreement with Yum Brands, the parent of Pizza Hut, NPC closed about 300 unprofitable Pizza Hut restaurants, most of which were dine-in restaurants.
The brand, which was struggling prior to the COVID-19 crisis, was moving away from its legacy red-roof restaurants in favor of stores that focus on carryout and delivery.
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Update: This story has been edited to include new details from NPC.