NPC International filed for Chapter 11 Bankruptcy protection in July mainly due to inability to service $900 million in debt following the emergence of COVID-19. The franchisee operates 400 Wendy’s Restaurants and is the largest Pizza Hut franchisee with 900 locations.
Flynn Restaurant Group has offered $816 million for 1,350 restaurants operated by NPC. The offer is subject to counter offers in terms of bankruptcy rules relating to disposal of assets.
Wendy’s is opposed to the sale to the Flynn Restaurant Group that operates 1,200 franchise locations in 33 states including the Applebee’s, Arby’s, Taco Bell and Panera Bread brands. Wendy’s regards the diverse holdings of the Flynn Restaurant Group as a potential conflict of interest and may bid for the 400 Wendy’s locations.