NPC International Inc., one of the largest franchised restaurant chains of the United States, is preparing to apply for protection from bankruptcy, despite the fact that its brands have reported a sharp increase in sales after the pandemic of coronaviruses, according to The Wall Street Journal, citing informed sources.
According to sources, the owner of more than 1,200 Pizza Hut restaurants and 385 outlets under the brand name Wendy’s Co. can on Tuesday to apply to the court for protection from creditors under Chapter 11 of the U.S. bankruptcy Code.
NPC International, missed a payment of interest on loans totaling about $800 million at the end of January, which the rating Agency S&P Global Ratings and Moody’s Investors Service downgraded the debt of the franchisee. NPC at the time was negotiating with creditors to subject the submission of possible bankruptcy.
Pizza Hut was struggling to pandemic in the United States, but changes in consumer behavior during the outbreak of coronavirus positive impact on the business of the pizzeria. People no longer visit restaurants, but has increased the orders for delivery.
In early may, Pizza Hut had the highest average level of sales in the United States over the past eight years, according to parent company Yum Brands Inc. Comparable sales in the restaurants of the network increased by more than 10% from late April to late may.
a number of restaurant operators on franchising system, announced the bankruptcy with the pandemic. Among them, the parent company of a network of family restaurants and family entertainment centers Chuck E. Cheese and the American division restaurants-bakeries Le Pain Quotidien.