Bankrupt pizza chain operator sells dozens of | International Market Information
Pizza lovers have been disillusioned with the closings of their favourite eating places for the reason that Covid-19 pandemic devastated the eating industry starting in 2020.The pandemic interfered with pizza parlor operations, which led to a decline in buyer visitors, a discount in income, and mounting money owed. 💸💰 Do not miss the transfer: Subscribe to TheStreet’s free every day publication 💰💸Publish-pandemic inflation elevated each food and labor prices, additional impacting eating places’ financial efficiency. Rising rates of interest additionally elevated the fee of eating places’ debt.Associated: Main trucking company information Chapter 11 bankruptcyFinancial misery led to a minimum of a half-dozen pizza chains to close areas, file for chapter, or each in 2024 alone.Seattle-based Mod Pizza confronted financial misery and thought of a chapter submitting in July 2024 after closing 27 of its 500 shops however as a substitute discovered a purchaser in Chatsworth, Calif.-based Elite Restaurant Group and continues to operate.Subsequent Degree Pizza Inc., the mother or father company of the Oath Pizza chain, on Oct. 22 filed for Chapter 7 chapter within the U.S. Chapter Court docket for the District of Delaware to liquidate its remaining company belongings a 12 months after it closed all corporate-owned areas, because it has stated it could not repay its collectors in full.The debtor had closed all of its company-owned areas by December 2023, however two remaining franchises have been nonetheless open in Poulsbo, Wash., and Wellesley, Mass., as of Jan. 31.
Prime restaurant bankruptcies in 2024.TheStreet
Fashionable Sonoma, Calif.-based chain Mary’s Pizza Shack on Sept. 10 filed for Chapter 7 safety within the U.S. Chapter Court docket for the Northern District of California as the ultimate step of a restructuring to transform the business from a single company into smaller family-owned items.The company closed 4 areas for the reason that fall of 2022 in a company restructuring and continues working 10 areas in Northern California.Phoenix-based Fired Pie, which operates 14 areas, on Nov. 13 filed for Chapter 11 safety within the U.S. Chapter Court docket for the District of Arizona to restructure its business underneath Subchapter V.A small Crystal Lake, Sick.-based restaurant chain Nick’s Pizza & Pub filed for Chapter 11 safety a second time on Dec. 2, 2024, to reorganize and restructure its business with plans to proceed working its two areas in Crystal Lake and Elgin, Sick.And now, a main pizza franchise operator is shutting down or promoting all of its areas in Chapter 11.
Pizza Hut franchisee EYM Pizza is closing or promoting all of its areas.Pizza Hut
EYM Pizza sells Pizza Hut areas Bankrupt Pizza Hut franchisee EYM Pizza L.P., which as soon as owned 142 of the chain’s franchise areas, bought 77 of its eating places in Georgia, Illinois, South Carolina, and Wisconsin to 6 separate bidders, together with Yum Manufacturers (YUM) franchisor Pizza Hut LLC, at a chapter public sale for about $11.78 million.Associated: Fashionable beverage model information for Chapter 11 bankruptcyPizza Hut LLC, which was the stalking horse bidder for 39 of the areas, gained an public sale for 18 areas, in response to chapter courtroom filings, Restaurant Enterprise reported on Jan. 30. The giant pizza chain may operate the areas itself or promote them to franchisees.Extra chapter:
PZH Meals and Valor Pizza gained auctions for Pizza Hut areas in Georgia and South Carolina, whereas KK Administration and Shawn Patel purchased areas in Illinois. PZH Meals and PH Hospitality Group gained auctions for Wisconsin areas.The franchise acquisitions nonetheless require chapter courtroom approval earlier than the gross sales can close. The franchisee had closed 15 of its areas in Indiana and Ohio in July 2024 earlier than submitting for chapter. It would finish up closing one other 50 areas that it has not been in a position to promote.EYM Pizza, which operated Pizza Hut areas in Georgia, Illinois, Indiana, South Carolina, and Wisconsin, filed for Chapter 11 chapter safety within the U.S. Chapter Court docket for the Japanese District of Texas on July 22.After submitting for chapter, the debtor employed franchise business brokerage Nationwide Franchise Gross sales to promote its eating places via its Chapter 11 caseEYM Pizza’s largest unsecured collectors included Producer’s Financial institution, owed over $21.6 million, and Pizza Hut LLC, owed over $2.2 million.Pizza Hut sued its franchiseeThe Irving, Texas-based pizza franchisee had beforehand been sued by Pizza Hut after it allegedly stopped paying royalties when a forbearance period with its mother or father company ended.A choose had dismissed a earlier lawsuit filed by EYM towards Pizza Hut for alleged breach of fiduciary obligation and different prices.EYM Pizza is an affiliate of EYM Group, which additionally operates Denny’s and Panera Bread franchises. The mother or father company as soon as owned KFC franchises underneath EYM Hen Operations, however no longer lists KFC areas on its web site.EYM was based by former McDonald’s Mexico president Eduardo Diaz in 2008 and had been working Pizza Hut eating places since 2015.Pizza Hut LLC, which has over 6,700 areas within the U.S., posted a word on its web site revealing that it was closing eating places however didn’t say how many.Associated: Veteran fund supervisor delivers alarming S&P 500 forecast
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