Closing a troubled chapter in Pizza Hut’s recent history, dozens of its stores in three markets have been transferred to new owners following the bankruptcy of the chain’s former franchisee, EYM Group.
National Franchise Sales (NFS) announced on April 3 the successful close of escrow and ownership transfer for 77 Pizza Hut restaurants across three key markets. It marked the completion of a competitive auction process that recovered just under $12 million for the bankruptcy estate.
Held on January 28 in Dallas, the auction attracted strong interest from qualified franchise operators and investors, NFS said in a press release. Despite financial challenges, including negative EBITDA at nearly one-third of the locations, NFS strategically focused on a core group of 38 higher-performing restaurants and a “supplemental strategy” for an additional 39 locations.
“With escrow closed and ownership transitioned, these locations are now poised for growth under their new operators,” said Alan Gallup, the NSF Partner who led the company’s Asset Recovery Team.
On January 31, QSR reported that six buyers would pay $11.78 million for the 77 stores while many others were shuttered. Pizza Hut itself was expected to purchase 18 locations for $720,000. Those stores are located in Georgia, South Carolina, Illinois and Wisconsin.
EYM Group filed for bankruptcy in July 2024 after a prolonged legal battle, replete with lawsuits and counter-suits, with Pizza Hut. Last June, Pizza Hut abruptly closed 15 EYM-franchised stores in Northwest Indiana.
