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Wendy's Co. has submitted a bid to buy nearly 400 of its restaurants in the <a href="https://dm.epiq11.com/case/nrh/info?utm_source=1851franchise.com&utm_medium=article&utm_campaign=wendys-partners-with-franchisees-to-bid-on-393-units-in-npc-bankruptcy-case-2714321" target="_blank" rel="nofollow">NPC International Inc. bankruptcy case</a>, <a href="https://www.sec.gov/ix?doc=%2FArchives%2Fedgar%2Fdata%2F30697%2F000119312520297566%2Fd33134d8k.htm&utm_source=1851franchise.com&utm_medium=article&utm_campaign=wendys-partners-with-franchisees-to-bid-on-393-units-in-npc-bankruptcy-case-2714321" target="_blank" rel="nofollow">the company said in federal filings Thursday</a>. NPC International Inc., which operates more than 1,600 restaurant franchises, filed for Chapter 11 bankruptcy protection in July. Wendy's submitted the consortium bid on Wednesday with a group of pre-qualified franchisees to acquire NPC International’s 393 Wendy's restaurants across eight different markets, according to the filing.“If the consortium bid is ultimately successful, the company expects that several existing and new franchisees would be the ultimate purchasers of most of the NPC markets, with the company acquiring at most one or two markets,” the burger brand said.On Nov. 6, San Francisco-based Flynn Restaurant Group LP, through subsidiaries, made a <a href="https://www.nrn.com/quick-service/flynn-restaurant-group-bids-816-million-buy-npc-international-out-bankruptcy?utm_source=1851franchise.com&utm_medium=article&utm_campaign=wendys-partners-with-franchisees-to-bid-on-393-units-in-npc-bankruptcy-case-2714321" target="_blank" rel="nofollow">stalking-horse bid of $816 million</a> to buy NPC International’s Wendy’s and Pizza Hut units, a total of about 1,300 locations, out of bankruptcy.Wendy's bid for NPC's units comes a week after it filed an objection to the stalking-horse bid by Flynn Restaurant Group. <a href="https://www.nrn.com/quick-service/wendy-s-may-withhold-consent-flynn-npc-deal-report?utm_source=1851franchise.com&utm_medium=article&utm_campaign=wendys-partners-with-franchisees-to-bid-on-393-units-in-npc-bankruptcy-case-2714321" target="_blank" rel="nofollow">The objection is based on the fact that Flynn owns two competitors, Arby's and Panera</a>, and isn't willing to divest from those assets. Wendy's also feels the break-up fees associated with the Flynn deal are unnecessary and expensive. Wendy’s bid for NPC's units will complicate the sale process, especially now that the court has approved the stalking-horse bid. It could ultimately result in NPC paying break-up fees one way or another. If NPC group doesn't agree to the sale, it could pay over $20 million and if Wendy’s doesn’t agree to the sale, the break-up fee would be over $10 million.&nbsp;The chain’s bid would have to come in high to try and best Flynn's $816 million bid for both 900 Pizza Hut units and the Wendy’s units. But Wendy’s objections to working with Flynn have been stacking up, even though Flynn believes it can work things out with the chain. The two have yet to meet an agreement on development and reimagine of restaurants. Wendy’s did not say how much it and its franchisees were bidding.Bids must be approved by the judge in the U.S Bankruptcy Court for the Southern District of Texas, where Leawood, Kan.-based NPC filed for Chapter 11 protection on July 1.“The company is actively participating in the Chapter 11 proceedings and continues to evaluate its strategic alternatives in connection with the sale process,” Wendy’s said in its federal filing. NPC remains the company’s largest single franchisee.Wendy’s tends to have more control over its franchisees and prefers working with franchisees that are willing to build new locations and remodel existing units, <a href="https://www.restaurantbusinessonline.com/financing/wendys-makes-bid-bankrupt-npc-internationals-restaurants?utm_source=1851franchise.com&utm_medium=article&utm_campaign=wendys-partners-with-franchisees-to-bid-on-393-units-in-npc-bankruptcy-case-2714321" target="_blank" rel="nofollow">according to Restaurant Business</a>. Wendy’s has said it is committed to maintaining its ownership level at about 5% of the total Wendy’s system and franchising the remainder. This bid would give the brand a guarantee that it would have a say in the future of these locations.

Wendy’s Partners With Franchisees to Bid on 393 Units in NPC Bankruptcy Case

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Wendy’s Partners With Franchisees to Bid on 393 Units in NPC Bankruptcy Case

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