Pizza Hut & Wendy's 1600 Stores File for Bankruptcy

NOT INVESTMENT ADVICE -IF YOU DO NOT UNDERSTAND SARCASM CLICK AWAY NOW. Today, NPC International, the largest franchisee in the Pizza Hut chain with over 1200 Pizza Hut restaurants and almost 400 Wendy's locations filed for Chapter 11 bankruptcy protection with $903 million dollars in debt. EVER WONDER HOW MUCH $$ FRANCHISES MAKE? https://youtu.be/bHoezHqvMjI

NPC have requested this restructuring which includes selling some Wendy's locations, and also has until July 24th to work a deal with Pizza Hut corporate on how to restructure the business. They will likely want to help!

One of the benefits of buying a franchise is that they have to list franchises that closed in their FDD, and provide it to any new buyer. They are not likely to want to divulge they closed 1200 stores in that document so they'll strike a deal of some sort. For the record, Pizza Hut shows almost 200 stores closed last year in 2019 - that was even before the Corona came to town.

A Pizza Hut spokesperson said: “While NPC’s Chapter 11 filing was expected, we view it as an opportunity to create a better future for NPC’s Pizza Hut restaurants,” “We are working with NPC and its lenders to ensure that NPC’s Pizza Hut restaurants emerge from this process with the support they need to succeed.”

So what happens now? well Pizza Hut the corporation seems to be fine, its just NPC and their 1600 locations that will be restructuring. Chapter 11 is basically a restructuring bankruptcy and in most cases the company is able to stay open and operating. Which means downsizing, reducing costs, and working things out with the businesses you owe money to - who will incidentally get zero if you have to close the doors. Most businesses come out of this alive. General Motors, United Airlines, K-Mart - all filed at one time. Also this famous gentleman, cant recall his name, has declared chapter 11 bankruptcy 6 times!

Chuck-e Cheese - filed for bankruptcy last week, and if you recall 2019 was a brutal year for retail with thousands of stores closing. You can bet we have not seen the last of some big names having to declare bankruptcy. But hey the stock market is stronger than ever, which is certain to last and we wont ever see a major downturn or correction. *(Sarcasm.jpg)

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https://www.pizzahut.com