Search
Make wrtv.com your home page

Large Wendy’s, Pizza Hut franchisee files for bankruptcy

This Jan. 29, 2012 photo, shows a Wendy's sign at a restaurant in Culver City, Calif., Sunday, Jan. 29, 2012. Fast-food chain Wendy’s Co. is changing the way it treats chickens and pigs used in its food in an effort to be more humane. The company’s animal welfare council said Friday, March 23, 2012, that one of its chicken suppliers, O.K. Foods Inc. of Ft. Smith, Ark., has started using a low-atmospheric pressure system that renders the chickens unconscious before the birds are handled by plant workers. The process, known as LAPS, is criticized by some animal welfare groups but replaces the industry standard practice of stunning chickens with electricity. (AP Photo/Reed Saxon)
by: WRTV Staff
Posted:

NPC International, which operates 1,136 Pizza Hut restaurants and 386 Wendy’s locations announced Wednesday it is filing for Chapter 11 bankruptcy.

The company said that it plans to keep its combined nearly 1,500 restaurants open during bankruptcy proceedings. NPC International has a total of approximately 7,500 full-time employees and approximately 28,500 part-time employees spread through 30 states and Washington, DC.

NPC International said that labor costs, increased expenses for supplies and the uncertainty due to the COVID-19 outbreak contributed to the company’s downturn.

“These challenges have been magnified recently by the impact and uncertainty of COVID-19, and we believe it is necessary to take proactive steps to strengthen our capital structure, so we have the financial flexibility to continue to adapt to current industry trends,” said Jon Weber, CEO & President of NPC’s Pizza Hut division. “We also intend to use this process to continue to evaluate and optimize our restaurant portfolio so that we are best positioned to meet the needs of consumers across the country.”

The restaurant industry has faced turbulence over the last few months.

Just last month, the NPC International added 140 Wendy’s locations to its portfolio of restaurants.

NPC International is the largest franchisee of Pizza Hut locations.

WRTV.com Trending Stories