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September 27, 2024Some 127 Pizza Hut restaurants across five states in the South and Midwest are at risk of closing for good.
The franchisee who runs them has put them up for sale after filing for bankruptcy in July due to mounting debts..
It is all linked to a major financial bust-up between Pizza Hut’s parent company and franchisee EYM Group.
Some 15 Pizza Hut locations that EYM ran in Indiana and Ohio were abruptly shuttered at the end of June as a result of the dispute. They remain closed.
EYM has now asked advisory firm National Franchise Sales to help find a buyer for a further 127 across Illinois, Georgia, South Carolina and Wisconsin are on the brink of shutting as part of the dispute.
EYM – founded by former McDonald’s Mexico president Eduardo Diaz – filed for Chapter 11 bankruptcy protection in July.
It owes Pizza Hut $2.25 million, and another $21 million to Manufacturers Bank.
EYM is being sued by the chain in relation to millions of dollars of unpaid bills.
In turn, EYM has blamed Pizza Hut for its financial problems.
