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A large restaurant franchisee is preparing to fill his crust with hundreds of Pizza Hut and Wendy locations that he plans to buy from his bankrupt owner.
NPC International has agreed to sell all of its approximately 925 Pizza Hut restaurants and approximately 225 of its 383 Wendy’s restaurants to the Flynn Restaurant Group. The remaining Wendy’s leases it owns will be sold to Wendy’s International in a $ 801 million business pair, NPC announced on Thursday.
Flynn is the largest restaurant franchise in the United States, operating 460 Applebee’s, 282 Taco Bell, 134 Panera Bread and 369 Arby’s.
NPC International has agreed to sell all of its approximately 925 Pizza Hut restaurants and approximately 225 of its 383 Wendy’s restaurants to the Flynn Restaurant Group. (Patrick T. Fallon / Bloomberg via Getty Images)
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The businesses, which are still pending approval by a judge, would see Flynn operating more than 2,350 restaurants with 70,000 employees and $ 3.5 billion in sales, allowing NPC to complete its Chapter 11 restructuring.
“The Flynn Restaurant Group has built our business over the past 20 years, focusing on managing superior operations with large teams on top-notch restaurant concepts,” said Greg Flynn, the company’s founder, president and CEO, in a statement in writing. “The Pizza Hut and Wendy’s restaurants that we agreed to acquire from NPC align perfectly with this strategy, and we are confident that our new team members will fit perfectly with the Flynn Restaurant Group.”
Buyers will offer jobs to all restaurant employees. Wendy’s International will make the locations it purchases available to five of its current franchisees.
| Ticker | Safety | Last | change | Change % |
|---|---|---|---|---|
| WEN | THE WENDY’S COMPANY | 21.60 | +0.49 | + 2.32% |
Carl Hauch, president and CEO of NPC’s Wendy division, called the business “an excellent result”.
“We are delighted that our restaurants are joining high performance restaurant franchise groups,” he said in a written statement.
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NPC, Pizza Hut’s and Wendy’s largest franchisees and the second largest franchisee in US restaurants, filed for bankruptcy protection last summer after missing out on the $ 800 million interest payment on loans in January, even before the coronavirus pandemic disrupted the restaurant industry.
Wendy’s will make the locations it purchases available to five of its current franchisees. (iStock)
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The bankrupt franchisee said in November that he was in talks with Flynn to sell all of his restaurants for up to $ 816 million.
A federal bankruptcy judge will consider the proposed deals during a January 15 hearing. Pending the judge’s approval, the companies intend to close the deal by the second quarter of the year.