NPC, Pizza Hut’s single largest franchisee in the US filed for bankruptcy earlier this year with debt of circa $900 million and is now seeking debt protection. NPC is also the largest franchise operator of Wendy’s in the US.
The debt protection process is now disclosing a number of issues and difficulties between NPC and Yum Brands, who seem unwilling to help NPC and are refusing them access to a number of their Covid-19 assistance programs.
Documents released through the court process imply that the business relationship between Pizza Hut and NPC have deteriorated. While the court process continues the dilemma for NPC seems to be deteriorating. A sales of what assets are still viable is now likely to existing management or a new suitor.
Financial analysts following the story unfolding are now suggesting that NPC may be split in two with Pizza Hut and Wendy’s franchises potentially operating separately and independently in future.
The situation clearly demonstrates how Covid-19 is similarly impacting the casual dining sector on both sides of the Atlantic.
Earlier today we reported on Burger chain Byron being immediately acquired upon entering administration for an undisclosed sum. The acquisition sees investment vehicle Calverton take on only 20 of the 51 Byron restaurants.
Yesterday we also reported that the new business formed by private equity firm Epiris had concluded a deal to take control of the Las Iguanas, Bella Italia and Café Rouge restaurant businesses.
Epiris has invested significant cash into the business to help spark a rapid unlocking of the group’s operations, with its restaurant businesses starting to reopen across the UK next week.
Pizza Hut and Wendy’s – 2 August 2020 – Pizza Hut and Wendy’s