Fast food giant, Wendy’s Co. is bidding to buy approximately 400 of its restaurants out of bankruptcy from NPC Quality Burgers, a bankrupt franchisee owned by NPC International Inc.
According to reports, the burger giant hopes to own approximately 5% of its locations in just one or two markets and is relying on other franchisees to buy most of the markets previously held by NPC Quality Burgers filed for bankruptcy and began selling its assets, including Wendy’s restaurants, in July.
During the COVID-19 pandemic, many restaurants with many dining chains, including California Pizza Kitchen, Chuck E. Cheese parent CEC Entertainment and Rubio’s Restaurants, have been hit hard with many filing for bankruptcy.
Wendy’s said it remains committed to maintaining its ownership level at about 5 percent of the total Wendy’s system. The burger chain expects several existing and new franchisees, part of the consortium bid, to buy most of the NPC markets, with Wendy’s buying one or two at most.
Wendy’s did not disclose the size of the consortium bid.