EYM Pizza L.P., a Pizza Hut franchisee that filed for bankruptcy in July, is selling all 127 of its stores in Illinois, Indiana, Georgia, South Carolina, and Wisconsin, as part of a financial restructuring process.
EYM engaged M&A advisory and brokerage firm National Franchise Sales to facilitate the sale, including assistance in the asset recovery process to maximize recovery for creditors. EYM’s bankruptcy filing listed two creditors: Manufacturers Bank, which it owes more than $21 million, and Pizza Hut itself, which is owed just under $2.25 million.
“National Franchise Sales is dedicated to navigating this challenging period with EYM Pizza L.P. and its affiliates. Our goal is to ensure a smooth transition and maximize value for all parties impacted by this process,” NFS Asset Recovery Team lead advisor Alan Gallup said in a statement.
EYM’s bankruptcy came after Pizza Hut sued the franchisee for not paying royalties on time even after a forbearance period was granted. EYM had previously sued Pizza Hut for breach of fiduciary duty, among other claims, but the case was dismissed, opening the way for Pizza Hut’s own lawsuit.
In August, EYM Pizza’s sister company EYM Chicken abruptly closed about 25 KFC restaurants in various markets in Illinois, Indiana, and Wisconsin. Both are owned by EYM Group, which also franchises Denny’s and Panera locations. Those KFC stores will remain closed until the locations have new owners.
Contact Alicia Kelso at [email protected]
