Pizza Hut Files Bankruptcy In Over 100 Locations: Here’s What We Know!

The last several years have been troubling for American retail. Even some of the major brand names are having difficulty surviving the pandemic's aftermath and the ensuing inflation issue.

Recently, more than 130 Pizza Hut locations filed for bankruptcy.

NRN.com reports that on Monday, July 22, the Eastern District of Texas received a Chapter 11 bankruptcy protection filing from Pizza Hut franchisee EYM Pizza L.P. and its connected firms.

It appears that the corporation has a $23 million deficit. They owe Manufacturers Bank over $20 million and Pizza Hut Corporate over $2 million.

For some time now, Pizza Hut and the franchisee have been embroiled in a legal dispute. They were sued by Pizza Hut for failing to pay royalties on time for their more than 130 locations.

But prior to that, EYM had filed a lawsuit against Pizza Hut on a number of grounds, including violation of fiduciary responsibility. Pizza Hut moved in for the kill after that action was dismissed, suing them again for the previously stated more than $2 million.

According to Nation's Restaurant News, since April, Red Lobster, the Arby's franchisee located in Louisiana, Miracle Restaurant Group, and the Subway franchisee based in San Antonio, River Sub, have all submitted protection requests.

What Does This Indicate About the Over 130 Pizza Hut Restaurants Included in the Chapter 11 Bankruptcy File?

It simply indicates that the franchisee is still seeking to restructure their debt in order to avoid having to pay off some of it and that the dispute is still going on. If the more than 130 Pizza Hut restaurants survive this ordeal, only time will tell.