Closure of 300 Pizza Hut locations after franchisee bankruptcy

No less than 300 Pizza Hut restaurants will close permanently after Yum’s biggest franchisee! Brands, the parent company of the fast food chain, has filed for bankruptcy.

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Pizza Hut also wrote that it would reallocate its employees from closed stores to “successful areas of the business where possible.” (iStock)

NPC International Inc., which owns 1,227 Pizza Hut locations and nearly 400 Wendy’s locations, filed for Chapter 11 bankruptcy protection on July 1, Louisville Business First reported.

According to the report, Yum! Brands and NPC International Inc. have agreed to close 300 underperforming restaurants.

“We continued to work with NPC and its lenders to optimize the footprint of NPC’s Pizza Hut restaurant and strengthen the portfolio for the future, and the joint agreement reached today to close up to 300 NPC Pizza Hut restaurants is an important step towards a healthier business, ”Pizza Hut said in a statement to Fox Business.

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Pizza Hut also wrote that it would reallocate its employees from closed stores to “successful areas of the business where possible.”

“In line with Pizza Hut’s previously announced transition to a more modern delivery, curbside and deferral asset base, a large majority of the NPC Pizza Hut locations to be closed are restaurants,” the statement said.

The closure of specific locations has not yet been made public.

According to a second quarter earnings report released by Yum! Pizza Hut’s brands and off-site channel generated “21% same-store sales growth excluding closed Express units, or 16% same-store sales growth including closed Express units.”

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Global system sales, excluding foreign currency conversions, were down 10% for Pizza Hut.