NPC International operates more than 1,200 Pizza Hut restaurants and 400 Wendy's restaurants.
NPC International is the largest franchise holder of Pizza Hut in the USA. Restaurants within the chain managed to survive the crisis caused by the coronavirus pandemic. They even showed an increase in sales in April and May due to a jump in online sales and increased demand for pizza delivery services.
However, Pizza Hut's sales had been on the decline for several years before, and in early 2020 the situation entered a critical stage. The company was behind on payments to individual creditors. Today NPC International has to deal with debt obligations in the amount of about one billion US dollars.
NPC International is currently in negotiations with creditors and intends to reach several agreements on debt restructuring. The largest creditors of the company are Pizza Hut and Wendy's, as stated in the bankruptcy petition.
According to experts of the financial company Cowen, Yum Brands, which in addition to Pizza Hut and Wendy's also owns the brands KFC, Taco Bell, WingStreet, and others, could lose up to $54.2 million of annual income from royalties. It could happen if there are restaurants run by NPC International that would cease to operate.
According to the official statement of Pizza Hut, restaurants of the chain managed by NPC International continue to operate. Pizza Hut also informs customers that it supports the company in its bankruptcy process and expects that as a result, it will be able to reduce its debt obligations, establish operating activities, and attract investment.
2 JULY 2020, USA