from Silver Doctors:
Pizza chains still face challenges from the pandemic. Even if their lead in the delivery business helped slow the economic effects of shutdown orders…
According to court papers, the company, which operates 1,227 Pizza Hut and 393 Wendy’s stores across the U.S., sought Chapter 11 protection in the Southern District of Texas court on July 2.
Company already in trouble before the pandemic
Prior to the coronavirus outbreak, NPC International was already facing financial issues. The company missed interest payments for its nearly $800 million in loans on January 31 of this year, prompting S&P Global Ratings and Moody’s Investors Service to lower their views on the company’s debt. At the time, NPC was already in conversations with its lenders for a possible bankruptcy filing, according to people familiar with the company’s finances.
The ongoing coronavirus pandemic has since made NPC International’s situation worse. In the wake of forced shutdowns due to the pandemic, the company has struggled with growing costs for food and labor. As such, the company now