National Franchise Sales (NFS), a US mergers and acquisitions advisory and brokerage company, has orchestrated the recent closure of escrow and transfer of ownership for 77 Pizza Hut restaurants across three key markets.
The transaction marks the completion of an auction process, recovering just under $12m for the bankruptcy estate.
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The sale follows the bankruptcy of EYM Group, a franchisee of the Pizza Hut restaurant chain.
In June 2024, Pizza Hut abruptly closed 15 EYM locations in Northwest Indiana and Central Ohio, which led to the filing of EYM for bankruptcy in July.
The auction, held on 28 January 2025 in Dallas, Texas, drew attention from franchise operators and investors, despite almost one-third of the locations reporting negative EBITDA (earnings before interest, taxation, depreciation and amortisation).
NFS employed a dual track strategy that focused on 38 higher-performing restaurants and developed a supplemental strategy for the remaining 39 locations.
This approach invigorated buyer interest and maximised recovery for the estate.
Alan Gallup, the NFS partner leading the company’s asset recovery team, stated: “Situations like these require the right mix of strategy, industry insight and buyer relationships — something we take pride in bringing to the table.”
“With escrow closed and ownership transitioned, these locations are now poised for growth under their new operators.”
Pizza Hut re-acquired 18 units in the states of Georgia, Illinois and Wisconsin, along with purchases by five other bidders in the auction.
In January 2025, NPC International, a bankrupt franchisee of both Wendy’s and Pizza Hut, reached agreements to sell its restaurants to Flynn Restaurant Group and Wendy’s International in separate transactions.
Flynn Restaurant Group is set to take over more than 925 of NPC’s Pizza Hut restaurants, half of its Wendy’s restaurants and all shared service assets.
Wendy’s International will acquire the remaining Wendy’s restaurants and has granted purchasing rights to five existing Wendy’s franchisees.
Pizza Hut’s largest UK franchisee, Heart With Smart, has engaged in advanced discussions with potential bidders for a significant stake in the business.
