NBC International, which is the largest agency of Pizza Hut in the United States of America, has declared bankruptcy due to the closure difficulties that occurred after the spread of the new Corona virus as a benefit of 19, which increased the company’s financial difficulties.
Pizza Hut declares bankruptcy due to the current conditions of Corona virus:
This is due to some of the factors, which are the aspects of competitive pressure to the company’s decision to provide protection from creditors under Chapter 11 in the South Texas Court. It is reported that the company opened the first pizza hut restaurants in 1962.
The company also suffered from the high cost of labor and food with its attempt to expand the delivery away from the way food is served in the catering halls. It also competed with a number of companies, including Domino’s Pizza and Papa John’s.
While the company’s debts are 903 million US dollars, and negotiations have been held in advance with 90% of the lenders. The aim of this plan is to reduce the company’s debts and sell part of its restaurants.
She explained that the Chapter 11 protection order for the company to exit from its business has nothing to do with continuing the work until the purpose is to pay off its debts until it regains profit from its activity and does not affect the thousands of Pizza Hut outlets owned by the concessionaire.
The company has more than 1,200 pizza hut restaurants in 27 US states, with 385 outlets running the Wendy’s brand, and the American company has billions of dollars in debt at a time of declining sales.