Approximately 130 Pizza Hut restaurants in several states in the South and Midwest are reportedly at risk of closing due to operational issues.
The stores are operated by franchisees who filed for bankruptcy in July and put them up for sale. daily mail reported On Wednesday, it noted that there was a financial dispute between the restaurant chain's parent company and its franchisee, known as EYM Group.
“Approximately 15 Pizza Hut stores operated by EYM in Indiana and Ohio closed abruptly in late June as a result of the dispute. They remain closed,” the store said.
“EYM has now engaged the advisory firm National Franchise Sales to help find buyers for an additional 127 locations across Illinois, Georgia, South Carolina, and Wisconsin,” the article continues, “to help resolve the dispute. “As part of this, we are on the brink of closure.”
According to reports, EYM owes Pizza Hut more than $2 million. It also appears that the company owes Manufacturers Bank $21 million.
Pizza Hut said in an undated post on its website. said“We, along with certain franchisees, have made the difficult decision to close a limited number of stores in the United States,” the company said, adding that there are 6,700 stores still open.
The restaurant chain planned to close more than 500 locations in 2019 as it transitioned from dine-in to delivery, Breitbart News reported.
of mail The report comes as other restaurants across the country are closing. Red Lobster has closed 100 stores, Breitbart News reported in May.
“This comes nearly a month after Red Lobster considered filing for bankruptcy after losing $11 million in 2023 on its all-you-can-eat shrimp promotion,” the outlet said.
According to Breitbart News, Hooters made the decision to close dozens of stores in June as inflation weighs on people in Democratic President Joe Biden's America.
A Breitbart News article from May said, “Analysis shows that inflation, high costs of living, and post-coronavirus lockdown conditions are creating a 'perfect storm' for restaurants across the country to go bankrupt.” “
The article states, “From sprawling metropolises like New York City to Midwestern towns, Americans are eating out less and less as the value of the dollar plummets.”
