Following mediation, the Flynn Restaurant Group LLC and Wendy’s International LLC have agreed on the disposition of the assets of NPC International Inc. that filed for bankruptcy protection. Flynn will acquire 925 Pizza Hut restaurants and approximately 200 Wendy’s locations for $553 million. Wendy’s International will purchase the remaining eponymous locations for $248 million.
The demise of NPC has been attributed to injudicious acquisition of debt approaching $1 billion resulting in a Chapter 11 bankruptcy petition in July.
The sale of NPC assets was delayed as Wendy’s opposed the takeover of their restaurants by Flynn’s since there was a conflict with their ownership of Arby’s, Taco Bell, and Panera Bread franchises in 33 states.