A bidding competitor has emerged for the U.S.’ largest restaurant franchisee, Flynn Restaurant Group, in the bid to attain assets from bankrupt NPC International.
Lawyers for international fast food restaurant chain Wendy’s said the company – along with a select group of pre-qualified franchisees – are hoping to be the strongest bidder for the assets which include 1,300 Pizza Hut and Wendy’s restaurants.
Wendy’s said it has not ‘OK’d’ Flynn – whose holdings include Wendy’s competitors – to take over the NPC restaurants, according to a report from the Business Times, and poses a roadblock to Flynn’s bid.
Kansas City-metro based NPC International announced in early November Flynn’s offer, a $816 million stalking horse bid.
Currently, Wendy’s operates 6 percent of the chain’s more than 5,800 U.S. locations and prefers to keep the restaurants in the hands of franchisees, reports Restaurant Business Online.
Under NPC, the Wendy’s business is valued at around $400 million.