INDEPENDENCE Ohio Midland Food Services, Pizza Hut’s sixth-largest franchisee with 92 units, has filed for Chapter 11 bankruptcy protection. This is the second bankruptcy filing for Midland, which operates restaurants in Ohio, Kentucky, Michigan, Maryland, Virginia and West Virginia. The company filed for Chapter 11 in October 2000 and emerged from bankruptcy protection 10 months later.
Midland, which recorded $64 million in sales for its fiscal year ended July 7, missed a $27.5 million principal payment to Capmark Finance and received an extension from the lender, according to documents cited by The Courier-Journal in Louisville, Ky. The franchisee reportedly blamed unfavorable lease terms and rising ingredient and other costs as major reasons for not being able to service its debt.
