Owner of 7 area Wendy’s restaurants files for bankruptcy
NPC International, Inc., owner of seven Wendy’s fast food restaurants in Berks County and two more in Pottstown, Montgomery County, filed for Chapter 11 bankruptcy on Wednesday, according to a release.
The Kansas-based company, which boasts 393 Wendy’s locations total in addition to its 1,227 Pizza Hut stores, cited “shifting consumer preferences” among the reasons it needs to restructure its debt.
“As our industry has been in the midst of dynamic changes due to shifting consumer preferences and dining behavior, we also have been facing increased labor and commodities costs and a higher level of financial leverage that presents obstacles to achieving our long-term business objectives,” said Jon Weber, CEO and President of NPC’s Pizza Hut division.
Weber also stated issues stemming from COVID-19 “magnified” NPC’s financial woes.
Despite the pandemic and subsequent bankruptcy filing, the Wendy’s side of the company seems to be in better position.
“The Wendy’s business remains strong and resilient and is already recovering from the impact of the pandemic to produce year-over-year growth,” said Carl Hauch, CEO and President of NPC’s Wendy’s division.
“We look forward to continuing our discussions with our brand partners, landlords and other creditor groups and are confident that we will be able to work collaboratively to agree on a long-term plan that is in the best interests of all stakeholders.”
A Wendy’s spokesperson confirmed NPC’s franchises were in good standing with their corporate obligations, pinning the recent issues on the coronavirus.
“Prior to the COVID-19 disruption, their Wendy’s restaurants were generally performing very well, and they continue to perform in line with our U.S. system,” said the statement.
All of NPC’s Wendy’s and Pizza Hut locations remain open for business, with no closures currently planned.
The Pizza Hut brand’s struggles have been in the news for some time, both nationally and at the local level.
Every standalone Pizza Hut location in Berks County permanently shut down abruptly last October, though those stores were owned and operated by Rohan Properties LLC.
The Exeter Township Pizza Hut has since reopened under new ownership.
According to reports, NPC is the largest Pizza Hut franchisee in the U.S.