NPC International Inc., the nation’s largest Pizza Hut and Wendy’s franchisee, filed for bankruptcy Wednesday and will put its burger restaurants up for sale as it continues to hold discussions over the fate of its pizza outlets, WSJ Pro Bankruptcy reported. The company, which operates more than 1,200 Pizza Hut locations and about 400 Wendy’s Co. restaurants, had been struggling even before the coronavirus pandemic forced many of its eateries to close. The company nearly filed for chapter 11 earlier this year before a group of lenders threw it a financial lifeline. The company said that the Pizza Hut chain has been a particular drag on NPC for years, amid steep competition from rivals and Pizza Hut parent Yum Brands Inc.’s reluctance to invest in the chain, according to a filing in the U.S. Bankruptcy Court in Houston. Nevertheless, if all goes well in bankruptcy, NPC intends to reorganize around its Pizza Hut eateries and emerge from chapter 11 under new ownership. NPC was in default on payments owed to the Pizza Hut parent when it filed for bankruptcy, court filings show. The franchisee has nearly $900 million in debt.
