Largest Pizza Hut Franchisee In The US Files For Bankruptcy Due To Covid-19 Woes
Pizza Hut is probably everyone’s earliest association with the doughy Italian delicacy and staple party food.
To know that the major international brand is facing financial woes must surely tug at the cheese strings of all pizza lovers.
Luckily, you won’t have to go on a pizza cleanse yet. Pizza Hut’s operator in the US may have filed for bankruptcy, but stores are still open.
Major Pizza Hut operator in US files for bankruptcy
According to CNBC, the largest operator of Pizza Hut in the US, NPC International Inc., filed for bankruptcy on Wednesday (1 Jul).
Specifically, NPC filed for Chapter 11 bankruptcy, which gives them time to reorganise their business affairs and finances.
While doing so, operations will continue as usual, meaning that all the stores in the US are still serving food.
Pre-existing issues worsened by Covid-19
The bankruptcy case in the US is largely due to pre-existing financial struggles which the Covid-19 pandemic aggravated, reports Bloomberg.
Inability to cope with increasing labour and food costs, as well as competition has landed NPC International Inc. US$903 million or roughly S$1.2 billion in debt.
Though they have time now to pay off their bills, Bloomberg states that they may eventually have to close some restaurants in the US. NPC currently operates 1,227 Pizza Hut stores there.
No news from Singapore outlets
Thankfully, their financial situation doesn’t affect the countless other franchises around the world.
So you’d be happy to know that your favourite outlet at the nearest mall will still be open.
Let’s hope they’ll continue to stay open for a long time, as Pizza Hut is one of the long-time favourite brands Singaporeans turn to. If you’re craving for pizza, we’d suggest you start making plans for your next meal soon.
Featured image adapted from Google Maps.