Over 130 Pizza Hut Locations Just Declared Bankruptcy

It's been a troubling few years for retail business in America. With the fallout of the pandemic, then leading into the inflation crisis, even some the big brand names are struggling to stay afloat.

Over 130 Pizza Hut Locations Just Declared Bankruptcy

According to NRN.com, Pizza Hut franchisee EYM Pizza L.P. and affiliated companies filed for Chapter 11 bankruptcy protection in the Eastern District of Texas on Monday (July 22).

The company seems to be about $23 million in the hole. They owe Pizza Hut Corporate more than $2 million, and Manufacturers Bank more than $20 million.

The franchisee and Pizza Hut have been in a legal battle for a while now. Pizza Hut sued them for not paying their royalties for their over 130 stores in time.

But, before that, EYM had previously sued Pizza Hut for breach of fiduciary duty, among other claims. Once that lawsuit got tossed, Pizza Hut then went in for the kill and sued them back for that more than $2 million, mentioned above.

Nation's Restaurant News also reports that since April, Red Lobster, Louisiana-based Arby’s franchisee Miracle Restaurant Group and San Antonio-based Subway franchisee River Sub have all filed for protection.

What Does This Mean for the More Than 130 Pizza Hut Locations That Are Part Of the Chapter 11 Bankruptcy Filing?

It basically means that the dispute is ongoing and the franchisee is now trying to reorganize their debts to get out of paying a portion of them. Time will tell if the more than 130 Pizza Hut locations will stay afloat in the midst of all of this.