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Local

Newton Pizza Hut permanently closed

A sign on the door signals potential customers that the Newton Pizza Hut is now closed. It is one of 15 location in Iowa affected by NPC International, one of the largest franchisees of Pizza Hut chains, filing for Chapter 11 Bankruptcy in July. The company expects to close up to 300 locations.
A sign on the door signals potential customers that the Newton Pizza Hut is now closed. It is one of 15 location in Iowa affected by NPC International, one of the largest franchisees of Pizza Hut chains, filing for Chapter 11 Bankruptcy in July. The company expects to close up to 300 locations.

The Newton Pizza Hut closed its doors Wednesday, Sept. 9. In total, 15 of the 97 Iowa locations were similarly affected when the franchisee filed for bankruptcy in July.

According to a CNN report, up to 300 Pizza Hut restaurants were to permanently close, Newton included. NPC International, one of the largest franchisees of Pizza Hut chains, filed for Chapter 11 bankruptcy citing coronavirus-related shutdowns, a massive debt burden of nearly $1 billion and rising labor and food costs.

In August, the company said it would target locations that “significantly underperform” when compared to other locations. It also targeted locations still operating a dining area as the chain on a whole has been shifting away from running restaurants with dining rooms.

It is uncertain exactly how many Iowa jobs have been affected by the closure.

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