The company’s 18 new units more than doubles its previous company-owned footprint
Pizza Hut acquired 18 units in Georgia, Illinois, and Wisconsin, from EYM Pizza in a court auction held last week. EYM is Pizza Hut’s franchisee that filed for bankruptcy protection in July. The franchisor paid more than $11 million for the locations.
Pizza Hut’s acquisition of these units is noteworthy because the company is mostly franchised and their addition more than doubles the chain’s company-owned footprint in the United States.
According to court documents, five other bidders have purchased the remaining 59 stores in EYM’s portfolio. They are also located in Georgia, Illinois, and Wisconsin, as well as South Carolina. Those acquisitions were made by PZH Foods Inc., for 21 locations; Valor Pizza LLC, for seven locations; KK Mgmt for 20 locations; PH Hospitality Group, for six locations; and Shantilal Patel, for five locations.
EYM Pizza had 127 stores when it filed for bankruptcy, suggesting that the remaining 50 have been closed.
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 sibling 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.
Contact Alicia Kelso at [email protected]
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