Pizza Hut abruptly shut 15 restaurants in Indiana amid a court fight with a corporate franchisee that runs 127 other outlets — which could also wind up on the cutting board.
The company said in a statement that it was "working to transition these locations and expects many of them will reopen soon," according to the nwitimes.com website.
The site reported on the closures Friday, saying local employees wrote on social media that they'd been laid off without warning and told to apply for unemployment benefits.
That move echoed one by the Red Lobster chain, which similarly blindsided workers at nearly 100 restaurants across the country in May before filing for bankruptcy protection.
The shuttered Pizza Hut outlets were operated by the Irving, Texas-based EYM Group, which has a restaurant portfolio that also includes Denny's, Kentucky Fried Chicken and Panera Bread restaurants across the South and Midwest.
EYM sued Pizza Hut for breach of contract in March, alleging that it "failed to adapt to modern business practices" and "has not kept up with the heavy competition" from Domino's and Little Caesars.
EYM also said that Pizza Hut "took millennials for granted," even though pizza is a "millennial approved food."
Pizza Hut counter-sued earlier this month, saying that EYM defaulted on $3 million in payments due in late 2022 and another $2.6 million last year.
EYM didn't return requests for comment, according to reports.
