NPC International, once one of the largest and most successful restaurant franchisee businesses in America, filed for bankruptcy in 2020 with some $900 million in debt. The largest operator of Pizza Hut and Wendy’s restaurants was sold to Flynn Restaurant Group, another large operator, which will take over the majority of roughly 1,300 bankrupt locations of both chains.
After months of negotiation, Judge David Jones of the Southern District of Texas has given the approval to a deal that will see NPC sell off some 951 Pizza Hut locations and nearly 200 Wendy’s restaurants to the Flynn Restaurant Group, according to PYMNTS. Wendy’s parent company will buy the remaining 200 of its own restaurants, many of which will then be offered to a handful of pre-approved franchise owners. (Related: McDonald’s Is Making These 8 Major Upgrades.)
The negotiations were brought to a close earlier this month when a deal was finally reached between Flynn Restaurant Group and Wendy’s, the two parties battling for the right to purchase the 400 Wendy’s locations in question. The chain wanted to acquire all the locations and distribute them to its franchisees to ensure the locations remain Wendy’s restaurants.
The $800 million sale comes after a challenging year for restaurants around the country, during which dine-in Pizza Hut locations were hit particularly hard. Some 300 Pizza Hut restaurants were closed permanently last year as NPC, which operated a fifth of all Pizza Hut locations in the United States, entered bankruptcy.
Other fast-food chains and fast-casual restaurant companies hit hard during the pandemic included Subway, Ruby Tuesday, Chuck E. Cheese, California Pizza Kitchen, and many more. Some chains, such as Souplantation, ended up going out of business entirely.
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