A bankruptcy judge designated the Flynn Restaurant Group LLC’s bid for Wendy’s and Pizza Hut franchisee NPC International Inc. as the best offer so far, setting an $816 million minimum price that rival bidders must beat, WSJ Pro Bankruptcy reported. The decision came after Wendy’s Co. voiced opposition, saying Flynn operates brands of sandwich competitors Arby’s and Panera Bread. Wendy’s has also formed a consortium with regional franchisees to launch its own offer for NPC’s Wendy’s restaurants. Both Wendy’s and Pizza Hut LLC have expressed concerns about NPC’s quick timeline for a sale, and have pushed for greater involvement in vetting any new owner of NPC’s restaurants. Last week NPC, the biggest franchisee of both Wendy’s and Pizza Hut restaurants, proposed tapping Flynn, the largest restaurant franchisee in the U.S., as the lead bidder, or stalking horse, to buy the company out of bankruptcy. At a hearing Friday in the U.S. Bankruptcy Court in Houston, Judge David Jones agreed to confer stalking-horse status on Flynn. He also signed off on breakup fees despite Wendy’s opposition. Wendy’s lawyer Sean O’Neal indicated the burger chain might ultimately not consent to Flynn’s planned takeover of NPC’s Wendy’s restaurants.
