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Report: NPC International is planning to file for bankruptcy

Pizza Hut/Wendy’s franchisee was struggling with debt burden before the pandemic

Lisa Jennings, Executive Editor

June 30, 2020

1 Min Read
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NPC International Inc., one of the nation’s largest franchise operations, is reportedly preparing to file for bankruptcy protection, according to The Wall Street Journal.

The Kansas-based company operated 1,229 Pizza Hut locations and 393 Wendy’s at the end of fiscal 2019. The report indicated NPC could file for Chapter 11 reorganization as soon as Tuesday, citing unnamed sources. 

NPC officials did not immediately respond to requests for comment.

There were signs of trouble even before the pandemic, according to the report. NPC missed interest payments on its nearly $800 million in loans on Jan. 31, prompting S&P Global Ratings and Moody’s Investor Service to lower their view on company debt. The report also said NPC has been in conversations with lenders about a possible bankruptcy for some time.

The Pizza Hut brand, meanwhile, in early May recorded its highest delivery and carryout average sales week average in eight years in the U.S., Yum Brands reported in mid-June.

Delivery and carryout-focused restaurants reported 15% sales growth, quarter-to-date, the Louisville, Ky.-based company said.

NPC, for its 53-week fiscal 2019, reported U.S. foodservice revenue, including restaurant sales and delivery fees, of $1.6 billion, up 4.3% from its 52-week fiscal 2018 revenue of $1.5 billion, according to Nation’s Restaurant News Top 200 data. 

Related:IHOP franchisee CFRA Holdings files for Chapter 11 bankruptcy protection

NPC joins a growing number of restaurant chains considering reorganization, including Chuck E. Cheese parent CEC Entertainment, the U.S. arm of Le Pain Quotidien, IHOP franchisee CFRA Holdings, and Bravo and Brio owner FoodFirst Global Restaurants.

Contact Lisa Jennings at lisa.jennings@informa.com

Follow her on Twitter: @livetodineout

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About the Author

Lisa Jennings

Executive Editor, Nation's Restaurant News and Restaurant Hospitality

Lisa Jennings is executive editor of Nation’s Restaurant News and Restaurant Hospitality. She joined the NRN staff as West Coast editor in 2004 as a veteran journalist. Before joining NRN, she spent 11 years at The Commercial Appeal, the daily newspaper in Memphis, Tenn., most recently as editor of the Food and Health & Wellness sections. Prior experience includes staff reporting for the Washington Business Journal and United Press International.

Lisa’s areas of expertise include coverage of both large public restaurant chains and small independents, the regulatory and legal landscapes impacting the industry overall, as well as helping operators find solutions to run their business better.

Lisa Jennings’ experience:

Executive editor, NRN (March 2020 to present)

Executive editor, Restaurant Hospitality (January 2018 to present)

Senior editor, NRN (September 2004 to March 2020)

Reporter/editor, The Commercial Appeal (1990-2001)

Reporter, Washington Business Journal (1985-1987)

Contact Lisa Jennings at:

Lisa.jennings@informa.com

@livetodineout

https://www.linkedin.com/in/lisa-jennings-83202510/

 

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