The American restaurant chain Pizza Hut declared bankruptcy.
A claim doing rounds since the beginning of July 2020 on social media platforms says that the well-known American restaurant chain Pizza Hut has declared bankruptcy due to the current Coronavirus epedimic effects.
American chain of restaurants Pizza Hut, founded in 1958, officially declares bankruptcy due to the effects of the Corona virus. pic.twitter.com/3Rhl40vmf4— Piz (@Pizoio) July 1, 2020
Pizza Hut filed for bankruptcy , life is over— val 🧚🏼 (@vallerriieeee) June 30, 2020
Pizza Hut just filed for bankruptcy— Damie Hosean 🏳️🌈 (@KingDHosea) July 2, 2020
Some posts claimed that Wendy's restaurant chain had also filed for bankruptcy.
Pizza Hut and Wendy's expected to file for bankruptcy.— Tim Edwards (@TimEdwardsZero4) June 30, 2020
Wendys and Pizza Hut is filing for bankruptcy this gonna hurt my heart— RONMANGONE (@ronmangone) June 30, 2020
After Misbar's investigation, we found that the claim was misleading. The Pizza Hut brand itself did not declare bankruptcy, nor did Wendy's; however, NPC International Inc., the largest franchise of Pizza Hut and Wendy's, did file for bankruptcy.
According to Bloomberg, the Kansad-based NPC International has $903 million in debt because of Coronavirus-related shutdowns, and has filed for Chapter 11 bankruptcy protection in the Southern District of Texas court.
NPC was founded in 1962. It operates 1,225 Pizza Hut restaurants and 385 Wendy's restaurants in 30 states and the District of Columbia, and has 7,500 full-time employees and about 28,500 part-time workers.
Last May the Pizza Hut brand "posted its highest delivery and carry-out average sales week in the past eight years," but it still faces a lot of challenges and worldwide sales dropping, according to the brand's parent company's report, Yum Brands, released by the U.S. Securuities and Exchange Comission (SEC) in April.