The global crisis has also hit the famous pizza giant! They have raised the bankruptcy flag and put all 127 of their branches up for sale one by one.

Pizza Hut Franchise EYM Pizza filed for bankruptcy in July. The sale of its 127 stores in Illinois, Indiana, Georgia, South Carolina, and Wisconsin will be conducted as part of the financial restructuring process. Two main creditors were identified in EYM Pizza's bankruptcy filing. These include Manufacturers Bank, which has over $21 million in debt, and Pizza Hut, which has approximately $2.25 million in debt.

"OUR GOAL IS TO MAXIMIZE VALUE"

Alan Gallup, the chief advisor of the National Franchise Sales Asset Recovery Team, stated regarding the bankruptcy process, "We are committed to moving forward with EYM Pizza LP and its affiliates during this challenging time. Our goal is to ensure a smooth transition for all parties and to maximize value."

BANKRUPTCY PROCESS ACCELERATED

The bankruptcy process of EYM Pizza accelerated after Pizza Hut filed a lawsuit for failing to pay royalties on time following the grace period granted to the franchise owner. Previously, Pizza Hut had sued EYM for allegedly breaching its loyalty obligations, but that lawsuit was dismissed.

SISTER COMPANY ALSO SUDDENLY CLOSED RESTAURANTS

EYM Pizza's sister company, EYM Chicken, suddenly closed approximately 25 KFC restaurants in Illinois, Indiana, and Wisconsin in August. These stores will remain closed until they are transferred to new owners. EYM Group also operates franchises for other brands such as Denny's and Panera.