Deals

Pizza Hut Operator NPC Considers Options Including Bankruptcy

  • NPC reached forbearance with lenders to continue debt talks
  • Declining sales and store closures put pressure on performance
Photographer: Daniel Acker/Bloomberg
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NPC International Inc. is exploring restructuring options including a bankruptcy filing as the company saddled with $1 billion of debt struggles amid relentless restaurant competition.

The largest franchisee of Pizza Hut restaurants in the U.S. started negotiating with its lenders after months of declining sales caused a cash crunch, according to people familiar with the situation who asked not to be identified discussing a private matter. The company aims to keep the restructuring out of court, but is weighing the possibility of a filing with a pre-negotiated plan in place, the people said.