Pizza Hut may close 127 restaurants after owner puts them up for sale
A bankrupt Pizza Hut franchise is selling all 127 of its stores across five US states, in the latest wave of possible closures for the popular fast food chain.
EYM Pizza L.P. is selling its stores in Illinois, Indiana, Georgia, South Carolina and Wisconsin as part of its plan to restructure.
It comes after EYM Pizza shuttered more than 15 of its restaurants in Indiana and Ohio.
The company filed for Chapter 11 bankruptcy in the Eastern District of Texas in July.
Pizza Hut sued EYM Pizza for not meeting deadlines to pay royalties despite being granted a forbearance period last year that ended in February of this year.
EYM Pizza did not immediately respond to a Metro request for comment and for a list of the exact locations that could close.
It has engaged National Franchise Sales (NFS) to manage the sale of its Pizza Hut empire. NFS is identifying qualified buyers and facilitating sales of the restaurants to help creditors recover the most they can and to map a future for the involved stores.
‘National Franchise Sales is dedicated to navigating this challenging period with EYM Pizza L.P. and its affiliates,’ stated Alan Gallup, who is lead advisor for the NFS asset recovery team.
‘Our goal is to ensure a smooth transition and maximize value for all parties impacted by this process.’
EYM Pizza had operated its Pizza Hut stores since 2015. It was founded in 2008 by Eduardo Diaz, the former McDonald’s Mexico president.
It is the latest in a string of restaurant bankruptcies in the US. The chains that have filed for bankruptcy since April include Red Lobster, Rubio’s Coastal Grill, Sticky’s, Tijuana Flats, Arby’s franchisee Miracle Restaurant Group and One Table Restaurants.
As of June, Pizza Hut operated more than 6,700 locations across the country, but that represents a shrinking number. The chain shuttered 300 of its locations in 2020 and halted its expansion plans during the coronavirus pandemic.
Get in touch with our news team by emailing us at webnews@metro.co.uk.
For more stories like this, check our news page.