Several KFC restaurants in the cities of Peoria and Rockford in the US state of Illinois had to close suddenly. According to media reports, the eight restaurants belonged to EYM Chicken Operations, a franchise company for KFC branches in Illinois, Wisconsin and Indiana.
In a statement, a spokesperson for the chicken chain confirmed the closures, saying: “These locations are owned by a franchisee. The decision to close a restaurant is always difficult for both the franchisee and the brand. We appreciate the support of our loyal guests.”
WMBD-TV reported that the KFC stores will remain closed until they have new ownership.
EYM Chicken Operations’ parent company, EYM Group, also operates franchises of Denny’s, Pizza Hut and Panera. Several Pizza Hut locations also closed in July, and shortly thereafter, EYM Pizza LP filed for Chapter 11 bankruptcy. The filing came after Pizza Hut sued EYM for failing to pay its royalties on time, even after a forbearance period granted last year that ended in February.
EYM had previously sued Pizza Hut for breach of fiduciary duty, among other things, but the suit was dismissed, paving the way for Pizza Hut to file its own lawsuit.
Contact Alicia Kelso at (email protected)
