NPC International Inc., one of the largest restaurant franchises in the United States and owner of the brands Pizza Hut y Wendy’s, filed for bankruptcy protection this Wednesday.
The company lost interest payments on his nearly $ 800 million in loans on January 31, which caused the rating agencies S&P Global Ratings and Moody’s Investors Service they reduced their views on the company’s debt, the New York Journal reported.
At the end of last year, NPC was in talks with its lenders to make a possible bankruptcy declaration at that time, as reported by media such as Fox Business and the newspaper The Wall Street Journal.
Despite the health emergency, restaurants have had good incomes, thanks to the fact that diners have turned to food delivery services. In early May, Pizza Hut had the highest average delivery sales in the entire country.
When a company applies for Chapter 11 bankruptcy protection, it offers financial relief and agrees to reorganize debts without the company being liquidated or stopping operations.
It is an option with which a company can save itself from closing its branches and being liquidated by its creditors. When the bankruptcy petition is accepted, the economic operations and reorganization of the company are supervised by a United States court.
NPC owns more than 1,200 Pizza Hut restaurants and 385 Wendy’s Co. locations, and joins a number of companies that have filed for bankruptcy during the coronavirus pandemic, including Chuck E. Cheese, CEC Entertainment, the company. Hertz car rental and retailers Neiman Marcus, J. Crew and JC Penney among others.
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